Stern Rubber purchased by Zhongli North America

Zhongli North America, Inc., announced Nov. 12 that it had purchased the Staples-based Stern Rubber Company.Stern Rubber Company has a facility in Aitkin, a 10,000 square foot building in the Aitkin Airport Industrial Park which it is leasing from Aitkin County Growth.Zhongli North America is based in Troy, Mich., but is owned by Zhongli Corporation, which is based in Shanghai, China. They are a leading global provider of vehicle parts and components and assembly parts, including engine mounts, chassis shock absorbers, chassis modules and interior/exterior plastic parts, according to a press release. The corporation has manufacturing facilities in China and technical sites in China, Italy, South America and the United States.

“Stern Rubber Company has the level of manufacturing capabilities we have targeted,” states Kenneth Rohan, vice president of operations for Zhongli, in the press release.

Stern Rubber Company was founded in 1969 and has manufacturing facilities in Staples and Aitkin. The Aitkin location makes gate valves for municipal water systems, said Bob Jackson, Stern Rubber operation manager. The site will continue to make the valves, along with some existing work at the Staples site which will be moved to Aitkin.

According to Jackson, Zhongli has been importing automotive parts from China to North America only for Chrysler. The company wants to serve both Ford and General Motors, however, those companies don’t want imported parts – the parts must be made in America.

Jackson said that means the Staples facility will be expanded drastically, and that there’s a good chance of a future building addition being needed here in Aitkin within the next year.

“It’s a good thing for both of our communities,” said Jackson.

The Aitkin location has had 15 or 16 employees over the years, and that number could also escalate with more work coming in the future. Jackson said the Stern name would stay in the overall naming of the company.