Qualstar Corp. is cutting ties with a Moorpark company it contracted with to provide manufacturing services of its tape storage products. The Simi Valley company began using CTS Electronics Manufacturing Solutions in December 2012, with CTS even hiring Qualstar’s manufacturing employees. The decision to outsource the manufacturing operation was made by senior managers who have since left the company following the successful takeover by Steven Bronson, the second largest shareholder. Bronson, interim chief executive at Qualstar, said he was not involved with the original CTS contract, but from what he was able to piece together there were unrealistic expectations on both sides. “Our type of manufacturing is a bigger box build with a lot of components,” he said. “We were not getting the level of quality we expected.” CTS was making tape library equipment that failed quality control so Qualstar took the step of taking delivery to give one final check before sending the equipment to customers, Bronson explained. “It was costing more to give (the equipment) to us and inspect them and then ship them out,” he said. To prepare for the return of manufacturing, Qualstar will hire about six new employees and make a small capital expenditure for equipment. Bronson would not disclose how much of a cost savings the company will see from doing its own manufacturing. The Moorpark CTS facility was part of a sale by CTS of its electronics manufacturing solutions business in early October to Benchmark Electronics Inc. The deal was valued at $75 million. Benchmark, in Angleton, Texas, is a public electronics manufacturer and engineering service firm. Attempts to reach a representative of CTS and Benchmark were not successful. Move to Mexico Ricon Corp. will relocate its wheelchair lift manufacturing operations out of the San Fernando Valley to Mexico in the coming year, a move that will cut more than 100 jobs. Ricon, headquartered in Panorama City, will also move its administrative and engineering staffs to a new facility in the Valley after the lease for its current space expires in May. The restructuring is being done to prepare Ricon for growth in a competitive market, said Tim Wesley, a spokesman for Ricon’s parent company, Wabtec Corp. “When the restructuring is complete, we expect that Ricon’s local employment will be about 120, about half of the total at the beginning of 2013,” Wesley said. Ricon notified the state Employment Development Department that 50 assemblers and fabrication machine operators would be laid off effective Dec. 1. An additional 87 employees, including welders, material handlers and supervisors, would be phased out over February, March and May. Wabtec, of Wilmerding, Pa., acquired Ricon in 2007 in a deal valued at $73.5 million. Ricon makes wheelchair lifts and ramps for buses, commuter railcars, and other commercial and private vehicles. At the time of the acquisition, Ricon had sales of $70 million annually. Ricon currently occupies a 200,000-square-foot building in an industrial park. No final decision has been made where the administrative and engineering staffs would relocate but it will be local, Wesley said. Manufacturing is moving to a Wabtec factory in San Luis Potosi, Mexico, he added. Acquire to Expand HFC Fabrication Co. in Sun Valley has acquired Clark Tool & Die and Stamping Co. in Chatsworth and relocated it to the east San Fernando Valley. The combined firms are now called HFC-Clark Fabrication. HFC Fabrication was spun off into a separate company from Hollywood Film Co., a manufacturer of film printers and colorizers. Hollywood Film’s fortunes declined as the entertainment industry shifted to digital prints and post-production that does not require the equipment. That led Vince Carabello Sr., president and owner, to begin reinventing the company and move beyond entertainment clientele. His son Vince Carabello Jr. heads up HFC-Clark and the companies share space in Sun Valley. The acquisition of Clark’s company provided inroads into those new markets. Some of its new customers have been Anthony International, a refrigerator and freezer door manufacturer in Sylmar, and Parker Hannifin Corp., a motion control manufacturer near Cleveland. HFC-Clark is also the exclusive manufacturer of the Luminator LED lighting system distributed by BriteShot in Deerfield Beach, Fla. “The whole key for us is we are a niche business of progressive dies and we are well-known for that niche,” Vince Carabello Jr. said. Progressive dies are used in a metal-stamping process that makes a finished part while the metal is fed through multiple stations with an automated feed. Clark Tool & Die was founded by John Clark about 20 years ago and had seven employees, including some of Clark’s children. Clark has retired but all the employees stayed on with HFC-Clark. Staff Reporter Mark R. Madler can be reached at (818) 316-3126 or [email protected].
Ventura County Partners Cut Tape That Binds
