Convex Acquires RSS Plastics

Convex Plastics, October 1st, 2010

Convex Plastics has significantly expanded their manufacturing capacity on by acquiring a major shareholding in Warkworth company, RSS Plastics Ltd.

The acquisition, which took effect on 1 October, will provide Convex with approximately 1000 tonnes of extra extrusion capacity and additional printing and bag making capabilities.

Convex Director Tony Letcher says, “RSS Plastics is currently supplying general packaging such as pallet wraps, flow wraps and carry bags. Our plan is to further develop RSS to focus on general packaging applications, allowing us to really step up our food grade packaging production capabilities in Hamilton.”

The Convex engineering department has already developed a work programme to develop RSS Plastics’ machines and several machines will be relocated over time from the Convex plant to RSS Plastics.

RSS Plastics Ltd will continue operating as its own entity, with all staff retained and previous share holder Trevor Yaxley continuing in his role as managing director.

From RSS Plastics’ perspective, Managing Director Trevor Yaxley says the acquisition will provide their business with numerous benefits, including lower raw material costs by combining their orders with Convex.

He says, “Fellow director Scott Pearson and I are delighted with how things worked out. Convex’s engineering and technical capabilities are tremendous assets to our business and they will certainly help immensely in our growth going forward. Convex’s reputation as a company of integrity will obviously be good for us as well.”

Trevor and Scott have found the whole team at Convex to have a very high level of integrity in that if they said they would do something they did it.

Trevor says, “We are very much looking forward to working with such a phenomenal group of people. The management at Convex and those we have met from the factory have all been delightful people and we are very excited about our future together.”

Trevor has worked 60% of his time at RSS Plastics and devotes a large part of his remaining 40% to running Lifeway Ministries Trust Inc, which he started with his wife Jan in 1983. Over the past 27 years the Trust has grown into an international charitable trust that focuses on supporting children, young people and families in both New Zealand and overseas. Their New Zealand operation includes over 100 full-time staff, homes for people with intellectual disabilities, preschool learning centres, an NZQA tertiary facility and a rehabilitation farm.

And if that doesn’t keep Trevor busy enough he travelled over 50,000 km in just eight and a half days in October connecting with contacts in Beijing, Singapore, London and LA to further develop the work they are doing with children.

RSS Plastics is one of several allied businesses that support the work of Lifeway Ministries Trust. Another of those businesses, also based in Warkworth, is Huhu studios which makes children’s animated cartoons. The business started in 1996 after a huhu bug hit a window and inspired Trevor and his team to produce a children’s cartoon featuring huhu bugs as characters, which went into 52 countries.

Tony Letcher says, “Trevor is doing some really good things with under privileged kids and Convex is really pleased to be aligned with that. His principles of honesty and integrity are a really good fit with ours and we are looking forward to growing both companies.”