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1989 BUSINESS SHOWCASE Wednesday, February 22, 1989, Page 8 Wegu Canada"outbids U.S. auto parts suppliers" By Debbie Luchuk Wear and tear on a car's parts are quite gruelling and as a result, manufacturers have to work to ensure that the parts will withstand the daily grind of driving. Wegu Canada of Whitby pro- duces rubber parts for auto- mobiles and trucks for many major manufacturers according to special formulations designed to withstand high heat, extreme cold, torsion and pounding that happen with the normal ope- ration of an automobile. "We produce rubber molded products, rubber to metal bonded products mainly for the auto- motive field," vice president Ken Norris said. Products include motor mounts, shock absorber mounts and exhaust fittings. "We produce according to the dictates of the automotive indus- try. Our sales department works with various buyers in Detroit, such as General Motors, Volks- wagen Ford any company that asks for a, quote, for example Hyundai.dWe are not limited,» Norris said. Wegu makes the rubber and rubber-on-metal components with synthetic and natural rub- ber compounds, and Norris said compounds are formulated to serve the needs of the customer. "Our lab tests all rubber com- ing off and quality with pieces of equipment to test for torsion, freezing, heat, etc. It's quite a complex business." Competition for contracts is quite stiff, and Wegu has to compete with several other com- panies on both sides of the bor- der. "You have to bid. We get their plans, specifications and give them a quote, then they pick the best one.' Often the part being bid on is one that will be installed in a car that is to be constructed for two years hence. Much of Wegu's work has to be secret to protect the plans of a new car model to be released in, for example, 1992. Parts can be for a car that is retailed for several years or for a car that ma prove to be a one-year wonder. "It (the contract) can be for the lifetime of the car or for a car on the assembly line for one or two years. Usually we're working on the basis that we're quoting today for parts three or four years from now," he said. Free trade does not frighten Wegu. Norris said that "generally, we outbid U.S. auto parts suppliers. Our market is international, and we're not re- stricted to any model or com- pany. We could sell to Lada in the U.S.S.R. if we wanted to." Wegu was chartered in 1973, and is a German owned com- pany, operated by Canadians and with profits going into the Canadian economy, Norris said. "We were originally a manu- facturer of sailboats. As the sail- boat market began to decline in the late 1970s, with the parent compan's support we went into the rubber molding business to the point where we are today, a total automotive shop. "We started from scratch here, and have reached the point where it is now through the efforts of employees in Canada. This is a stand alone business: the profits stay here and benefit Canadians.» Wegu now employs approxi- mately 65, and but has had as many as 100 employees, the- number dictated by the contracts procured by the sales depart- ment. "We can produce until we're bursting at the seams. We can* g et contracts this year that may ouble last year's volume," Nor- ris said. Continued business depends on a quality rating from the big auto manufacturers. "If our rating from the auto manufacturers is good, then we will be considered later for other companies' contracts." For example, he said, if Ford has a contract with Wegu, and, they produce a quality product, then other companies will recoq nize Wegu and accept Wegu s bid. The company gears down in I D. I. S. INSURANCE BROKERS L.TD. Crum & Forster of Canada Ltd. Crum & Forster of Canada is pleased to announce the appointment of D.I.S. as their insurance broker in the Ajax - Whitby - Pickering area. Crum & Forster of Canada Ltd. is a major Canadian general insurance company which writes homeowners, cottages, automobiles, and personal liability insurance tailored to the upscale personal insurance market. Crum & Forster have selected D.I.S. as being the proper blend of professionalism, marketing and technical knowledge to serve this market. For more information on the many quality products of Crum & Forster, please contact D.I.S. Insurance Brokers at 965 Dundas St. W., Suite 200, Whitby, 666-2090. Crum & Forster and D.I.S. form a powerful team to satisfy your insurance needs. the summer, and July.is a holi- day of sorts while the automobile companies get ready for new versions of automobiles. Norris said the past year for Wegu has been a successful one. "We've grown substantially over the years into a gd, pro- gressive automotive ru ber pro- ducts plant," he said, adding that the company now has a repu- tation of 'unparalled excellence." Part of the reutation stems from Wegu's prob em-solving. "If we do meet with a problem, we will find out what the pro- blem is, go to see it and solve the problem. We can't afford to keep a plant (auto) on the hook, Norris said. Expansion for Wegu will be further expansion in testing and quality controls, to make better and better, longer lasting, rubber parts. Making rubber is "like making a cake. e must know the ingre- dients and proportions." WALMSLEY - JUDD Better products for better resuits By Adam Sikora "Distributing better products to make your products better? is the slogan followed by Walmsley- Judd Ltd., a Whitby company coming off a good 1988 year and expecting more of the same in 1989. Founded by partners Jack Walmsley and Bill Judd in 1968, it was originally located on Charles St., moving to its current 2001 Thickson Rd. S. (unit 5) location 13 years ago. Walmsley-Judd has always been a family business, with all eight staff members, including the two principal owners, mem- bers of either the Walmsley or Judd clans. Actin g as• an industrial sup- plier, selling wholesale to manu- facturers, Walmsley-Judd deals with large corporations such as General Motors and Canadian General Electric of Peterborough, and many smaller machine shops and fabrication operations. Its range of products offered include machine shop supplies, drills, taps, grinding mills, fas- teners and precision instru- ments, the latter a very popular item. Although most of its sales are made on Canadian soil, Walms- ley Judd receives most of its products from offshore industrial suppliers. Examples of this are S.K.F. of Sweden, Mitutoyo of .Japan and a variety of cutting tools from Britain. Walmsley- Judd's largest national supplier is Universal Grinding Wheels of Brockville. Walmsley-Judd has adopted a "wait and see" attitude on the effect of the Canada-U.S free- trade agreement. Currently competing with in- dustrial suppliers in Oshawa, Pickering and right through to the west end of Toronto, Paul Judd says he doesn't expect the company to be affected as heavily as could be the Windsor-Hamii- ton area, which is closer to the United States border, and would be the first victim to any influx of U.S. products. Priding itself on being service. oriented, Walmsley-Judd intends to always put good service before high prices, says Judd. and From left to right - (standing) Crum and Forster of Canada: John Engel, Marketing Manager; Chris Markwell, President and C.O.O.; Shalini Bennett, Marketing Representative; Dave Tippett, AVP Personal Lines. (seated) Peter DiLello, President D.I.S.; Ken Rayner, Senior Vice-President Crum and Forster of Canada. 1