The TPR interviewed Charles E. Sholtis, Chairman and Founder of Plastic Molding Technology, Inc. (PMT) in El Paso, TX.  Also contributing to this feature are sons Charles A. (CEO) and Todd Sholtis (Sales Manager).  With its roots in the American Northeast, PMT has embraced industry trends and grown to possess a world footprint, serving customers with precision plastic molding and mold manufacturing services.

What is your company niche, and what does you company do that is notable, unique or different?

PMT’s niche is gears, micro molding, insert molding and working with high temp resins to provide a customer solution.  PMT’s manufacturing services include design, engineering and mold making from prototype to high volume repetitive production of molded plastics.  Customer parts are made from engineering materials to precise (+/-.001 inch) tolerances quickly, economically and to rigid quality standards around the clock.   

Continuous improvement is the foundation of the company’s mission to serve its demanding customers and is carried out through a variety of initiatives. PMT serves the Automotive, Computer, Electronics and Medical markets worldwide by offering value added service and parts supplied on many products such as cars, electric shavers, surgical instruments and circuit breakers. The real savings identified through a commitment to 100% on time deliveries and 100% acceptance of product by customers make PMT a world class company that stands high above the rest. Customers, such as Carbone Lorraine, Emerson Electric and Texas Instruments recognize PMT as a selected strategic supplier that can meet demanding business excellence criteria.

Plastic Molding Technology, Inc. (PMT) specializes in the manufacture of injection molded plastic components with extremely high tolerance.  PMT is also an insert-molding specialist, offering the latest in technology and an optimum level of expertise and experience.  The company offers a “total package approach,” with complete tooling services available.  Also, they offer a complete tooling and molding facility in Europe that ensures shorter lead times and greater efficiency.

PMT molds an average of 1,000,000 lbs/year of resin.

PMT has QS9000 AND ISO9000:2000 Lean manufacturing, JIT, 5S and SPC programs in place, and is presently working on TS16949 Qualification, the new global automotive industry quality standard. 

When and how did you get into the industry, what attracted you to it? 

I attended Pennsylvania State University for one year where I studied drafting and design technology. I then moved to Jamestown, New York in 1960. Initially employed at Marlin Rockwell Corporation, I took a job in the factory working three shifts as a tool crib attendant, remaining in this position for over a year until promoted to a draftsman in the engineering department. I thought plastics was exciting and I loved to create things from design to molding

In 1963 I took a position with Sylvania Electric in Warren, PA, as a design draftsman working in the molding plant. I held various positions there including estimator and junior mold designer until I left in 1967 to join Trucklite Corporation, a division of Quaker State Motor Oil, as a Tool Engineer and Mold Designer.  My education continued at Jamestown Community College where I eventually obtained an Associates Degree in mechanical technology by attending night school. In 1968 I was certified by the SME as a tool engineer. 

In 1969 I accepted an offer from Remington Shaver which prompted the move to Connecticut. I took a position in Bridgeport as a Plastics Process Engineer where I remained until 1971. 

That year I accepted a position with Timex Corporation as a Plastics Manufacturing Engineer. But the desire to run my own business prompted me to open a start-up facility, which was PMT.  So in 1973 I rented space in an old mill building in Bridgeport, CT, and worked two jobs while I established this new enterprise.  

In late 1974, when he had enough business to try to make it on his own, he left Timex and began making his mark in the industry.  In the spring of 1985 his son, Charles A. Sholtis, returned from his tour in the Navy and joined the family business.  He is now CEO of PMT.  In the early 1990’s Todd M. Sholtis, the younger son, joined PMT as Facilities Coordinator, handling equipment layout, purchases and maintenance. He later was promoted to Sales Manager and then Managing Director of PMT Slovakia s.r.o. He is now the Vice President of New Business Development.  Charles E. Sholtis is Chairman of PMT and Chief Technology Officer. 

Over the years, PMT went through several expansions in the U.S. including a branch facility in El Paso, TX, in 2000 after the NAFTA Treaty was signed.  In 2004, the company made a big decision to relocate its headquarters to El Paso and a new 40,000 square foot facility was erected to serve the maquiladoras in Mexico. 

In 1992 when Charles E. Sholtis traveled to Europe and visited Czechoslovakia, he realized the opportunities opening up for foreign investment and in 1997, with one employee, a facility was established: PMT Slovakia, s.r.o. By the summer of 1998, Todd M. Sholtis moved his residence to Bratislava to oversee PMT Slovakia and a newly formed joint venture company called ESOPLAST. ESOPLAST is located in Liptovsky Hradok, a town in the north central region of Slovakia and is a facility that produces injection/insert-molded components and molds. 

Relate a notable “best time” for your company (can be more than one) 

• When I first started my business in Bridgeport, CT, I got my first new machine on a handshake with a fellow from Boston. I knew this machine lease agent from my previous job, and he wrote a lease for a new molding press based upon my business plan. Moving out of the loading dock area of a tool and die shop a few years later to our new molding site in nearby Stratford,CT, was another milestone.

• Opening the Slovak mold design and development center and the joint venture molding operation in Europe

• The Thomas & Betts program was a series of network components coordinated from our offices in the USA and designed and built in Slovakia; 28 mold sets done in 10-18 weeks for the telecom market. The design concepts were in the USA, molds built in Slovakia and the customer assembled in Mexico.

• Designing and building 12 molds for Tyco Electronics in the USA with all molds on time and in spec, which helped us win new business.

• The first automated insert molding, lights-out production cell featuring digital camera inspection and improved quality and lower cost for our automotive sensor client in Europe.

• Awarded Connecticut Family Business of the Year in 2000 by the UCONN School of Business.

Similarly, relate notable challenges that your company has overcome. 

Current challenges include rising raw material, energy and healthcare price increases; and the loss of skilled toolmakers in the trade due to retirement. The tax system in the USA puts most manufacturers at a worldwide disadvantage. Global sourcing and on-line part sourcing auctions have followed a distorted Wal-Mart “how low can you go” model, turning engineered products into commodities. This has seriously hurt the industry from which it may never recover. The global exchange rate for the Chinese currency is not working in the favor of American exporters; many economists see it undervalued by 20%, artificially making Chinese products less expensive. But there is hope with some business coming back to North America from China for quality, service and logistics reasons. Watching good customers and tool suppliers close their doors over the last ten years has also been trying. 

From a customer service standpoint, a key automotive account came to us with a request for assistance. They had a cruise-control’s clutch assembly, with an AGMA 7 gear requirement. The part is  a glass filled nylon part overmolded with a stainless steel insert. The customer had an in-house operation that used a tool with manually loaded inserts, but they had some serious quality, productivity, cost, and delivery issues.  The problems were acute and caused a great deal of anxiety at the assembly plant. 

Our appraoch was to retool and automate the production with a zero defect goal in mind. After the cell was built,  we reduced costs by 32% and the customer’s defect rate was about 9,000 ppm and we took that down to less than 6 ppm.  

Our customer was in danger of shutting down his customer’s automated production line because of delivery problems. The automated molding solution took it to 100% on-time delivery, shipping 70,000 units/week. We built-in a capacity buffer factor though—actually, we can produce 90,000/week.  

It is running here in El Paso on a 60-ton Nissei machine with automation from Injectech Engineering of Torrington, CT. The stamping is made with a double-disk grinding process to hold the insert ± .0005-in. flatness. 

Another switch customer came to us with a design that was not conducive to molding. We worked closely with the product designer to modfiy the insert molded design to make the switch housing moldable and eliminate flash/non-fill areas. It had intriacte stampings that required modification to meet performance requiments. 

When you are working on projects with your customers, what aspects would you like them to better recognize?   

The investment required – both human and capital – to implement new programs and learn expertise along with proprietary designs or processes. Most customers take this for granted and expect development work at no cost to them.  We invest in training and technology to have the best quality and production support. 

List newly acquired technology, machinery or key personnel (in last year).  

154-ton presses (three), 190 ton (one) and 310-ton (one) presses were added. The company runs 50 presses ranging from 24-ton through 310-ton clamp. 

In addition, PMT has recently added a new $55,000 fully motorized and computerized optical view machine (CMM) which was painstakingly selected as having the best resolution in the industry. 

Has your company recently expended?  Plans to expand or form partnerships/alliances? 

We conducted an expansion/consolidation at our El Paso facility in 2004 and plan to grow in our J.V in Slovakia. The plant was built pursuant to new contracts from clients operating in Mexico. The business grew in Texas and the New England business declined over the last three years, which lead to the closing of the plant in Seymour, CT – its home since 1988. It was quite a move, loading 36 flatbed trailers with equipment for the relocation move, code named Project Sandstorm.  The move took over the six months relocating the CT plant to TX in early 2004. It was a high stress period of time, but we did it without missing any customer production schedules. We are also looking for a good tool source partner in Asia over the next year. India is also a possibility.

Are you involved in any industry organizations or educational programs related to the trade? 

We offer an apprenticeship program in Texas; and we participate in a manufacturing training consortium through El Paso Community College. PMT is also a member of the Society of the Plastics Industry and other manufacturing groups. 

What do you think about changes occurring in the industry due to globalization?    How has it affected the way you do business?   

Globalization has eroded the profit margins of all custom molders.  Almost every week there are molders going out of business.  Not just small ones, large ones too. Most new business is being tooled abroad. We now find ourselves doing more Internet bidding on blocks of business through global sourcing teams. The silver lining inside this dark cloud is the lowest bidder does not always win. Quality, service and logistics play an important role over a Chinese supplier.

What will the industry look like in 3 to 5 years? 

In 3-5 years most small custom molders will no longer be in business.  There will be a consolidation into large, one stop manufacturing centers with niche Internet-based capabilities worldwide. Automation will continue to be used more in the factory. Geographic location will play a role to support manufacturing, but engineering and design may be done anywhere that is cost beneficial. The world is becoming much flatter each day.

Additional background information:

Number of years in business:  PMT was established in 1971.

Current number of employees:  Total employment can be 50 to 75 employees depending upon workload and schedule.

Current square footage:  Headquarters is 40,000 square feet; Slovakia facility is 14000 square feet.

Additional locations:  

• PMT Slovakia s.r.o. in Bratislava

• ESOPLAST s.r.o. (joint venture) in the Slovak Republic

• Sales representation in USA, Mexico, Slovakia, U.K. and Germany

Website: www.pmtinc.com

Types of tools built and/or run:  Niche is gears, micro molding, insert molding and working with high temp resins; manufacturing services include design, engineering and mold making from prototype to high volume repetitive production of molded plastics.  Hot runner, MUD, Round mate, three plate and quick change configuration tooling is offered.

Industries served:  Automotive, Computer, Electronics and Medical markets worldwide

Contact Information: 

Plastic Molding Technology (PMT), Inc.

12280 Rojas Drive Unit A
El Paso, TX, 79936
United States of America
Telephone: + 915 593-6922
Facsimile: + 915 593-6923

Email: sales@pmtinc.com