It began with two young companies, the first – Kibbutz Cabri, and the second – Plasson Industries. They joined forces in the mid-90s, and Rion came to be.
The early Days
Then as today agriculture was a very successful economic sector in Kibbutz Cabri. Nonetheless, there was a strong desire to expand the industrial activity of the kibbutz, in addition to the Cabiran plant. Thus, the connection with Plasson Industries, which sought to expand its manufacturing activity to an additional site, was only natural. To underscore this partnership the name Rion was chosen as the name of the new company. The name Rion combines the two last syllables of the involved companies: Cabri and Plasson.
While Rion’s first industrial facilities were being built, workers had to be trained – and they began their training at Plasson. There was a great deal to learn about plastic injection molding, and we acquired our initial knowledge from Plasson, one of the best companies in Israel.
First Steps in Injection Molding Manufacturing
In our first years more than 95% of the company’s manufacturing activity was for our partner, Plasson. During this time, we also entered an entirely new field – developing residential greenhouses. This reflected our knowledge in agriculture along with our knowledge in the plastics field. This successful activity was eventually sold to Palram Applications and serves them to this day.
2008 as a Milestone: A Focus on Sub-Contracting
A great deal has been written about 2008 and the worldwide financial crisis which erupted that year. Traditional industries experienced decreased activity, and Rion was no exception. The declining activity at Plasson opened a new opportunity for us: to offer the same excellent service we provided Plasson to other companies as well, and to develop as a leading injection sub-contractor.
“2008 was in fact Rion’s starting point in providing plastic injection molding services”, recounts Dudu Leib, Rion’s CEO. “In the following years Rion Industries honed the direction of its activity with additional customers. Today we continue to manufacture for Plasson, and are happy with the partnership. However, if in the past it comprised the majority of Rion’s manufacturing, this is no longer the case”.
What does Rion Manufacture for Plasson?
The best person to answer this question is Ofir Ram, Rion’s COO. “We manufacture quite a few products for Plasson Industries, with Rion manufacturing all the coated cables used for electrofusion welding. We manufacture the cables from scratch, including their coating, and they are integrated into numerous Plasson products. We also manufacture some of Plasson’s chicken coop products, as well as mats for connectors using the overmolding technique. The connector is installed over an active gas or water pipe by welding, and enables branching from this pipe, safely and without leaks”.
Do Rion and Plasson still Share Knowledge?
“Definitely”, says Dudu Leib, but also points to a trend reversal. “If in the beginning the information flowed from Plasson to Rion, now it sometimes flows in the opposite direction”. He explains: “In addition to sharing information on technical issues, and Plasson’s logistics use of our mold plant as an operational arm, quite a lot of information in the procurement and logistics field comes from Rion owing to our sub-contracting activity. Working with numerous and diverse customers and suppliers required us to develop suitable work procedures, for example approving suppliers and building a bank of contacts and substitutes. These advantages now serve Plasson, in light of current difficulties in world supply chains”.
What does Rion Gain from its Connection to a Large Public Company such as Plasson?
“Plasson helped us implement the right organizational culture and high bookkeeping standards, based on our commitment to our customers and investors. It is a school for proper manufacturing management, for acquiring and implementing technical knowledge and for considering maintenance and logistics issues. Plasson’s experience as a public company that operates with transparency contributes a great deal and enables us to manufacture excellent plastic products for our customers”.
