June 1, 2009

Chardon Rubber
files for Chapter 11

By Mike McNulty

Rubber & Plastics News Staff

CHARDON, Ohio—One of the long-time mainstays in the American rubber product manufacturing industry soon could be split up, sold or closed.

Chardon Rubber Co. has filed for protection from creditors under Chapter 11 in the U.S. Bankruptcy Court for the Northern District of Ohio in Cleveland. As part of its restructuring, it has agreed to sell parts of the firm to Wabtec Corp., a rubber product maker with manufacturing facilities in Greensburg, Pa., and Strongsville, Ohio.

That sale hinges on a ruling by the court and the highest and best bid process of the bankruptcy proceedings, according to Marian DeVoe, president and chief operating officer of the versatile rubber product maker.

“The filing was made so that we can continue to operate our ongoing core business while giving us the time and forum necessary to restructure certain business segments and develop a debt restructuring plan, which will include the sale of all or parts of our operation,” DeVoe said.

She hopes to see the sale complete within the next two months. If Wabtec is the successful bidder, Chardon Rubber likely will continue operating under a services agreement for the time being, she said.

Poor economic conditions have negatively impacted the Chardon-based compa-

See Chardon, page 23

“The economies of scale favor
larger companies with more robust
resources than a company our size.”

Marian DeVoe
Datwyler to close site,
move lines to Mexico

By Mike McNulty

Rubber & Plastics News Staff

MARION, S.C.—Datwyler Rubber and Plastics Inc. plans to close its Marion factory in the fourth quarter, lay off about 50 employees and move production to its newer facility in Mexico.

The producer of molded, extruded and lathe-cut mechanical rubber goods, part of Switzerland-based Datwyler Group, opened the manufacturing site in Silao, Mexico, a year ago. It has about 5,000 square meters of production space, a company spokesman said.

Machinery from the Marion factory and production of rubber safety com-

ponents used in the automotive industry will be relocated to the Mexican plant by the fourth quarter, he said.

“The announcement was made so early in order to be able to coordinate with customers and employees,” the spokesman said.

The Marion facility, which spans about 73,000 square feet, is Datwyler’s only production site in the U.S. The building will be put up for sale after October, according to the spokesman.

The Marion factory apparently was a victim of a poor economy. Dewier Rubber, which operates as the parent company’s Rubber Division, fell short

See Datwyler, page 22

Rubber Goes Green

A special section on innovations and investments in green technology in the rubber industry begins on page 11.

Many original equipment manufacturers are switching to quick-connect couplings
to increase assembly line productivity and reduce warranty claims and rework, ac-
cording to Gates Corp.
Hoseddown
Hydraulic sector feels the heat

By Bruce Meyer

Rubber & Plastics News Staff

Hydraulic hose may not get the headlines automotive does, but that doesn’t mean the sector hasn’t taken a big hit nearly across the board because of the current global economic crisis.

However, because the product spectrum is vital to so many industries, those in the market said there will be a future for strong hydraulic hose manufacturers that run their businesses smartly.

Survivors, they said, will be those that manage their cash well, didn’t overextend themselves when times were good, continue to focus on technology and aren’t afraid to look for opportunities during these down times.

“It’s important to note that the hydraulic hose market really is a robust industry,” said Jeffrey Finch, vice president of Eaton Corp.’s Fluid Conveyance business. “It’s an enabler. Without fluid power, many industries