Mobile Thermo Systems, Premm Metal Products acquire RigMaster assets

| Thursday, March 12, 2009

When RigMaster Power closed earlier this year, Mike Dolmaya’s company was one of those that stood to suffer losses. Dolmaya is the president and CEO of Mobile Thermo Systems, a Canadian company that was a supplier to the now-shuttered APU manufacturer.

For the past eight years, Dolmaya’s company and Premm Metal Products – owned by Midori Chikira – were the largest single-source suppliers for RigMaster. Dolmaya said the two Toronto-based companies always work closely together, and the resurrection of RigMaster was vital to the financial health of both Canadian companies. They began working on a plan.

Last week, Dolmaya announced that in a joint venture, Mobile Thermo Systems and Premm have purchased exclusive rights to manufacture RigMaster auxiliary power units.

“Right now, Mobile Thermo Systems and Premm Metal Products have a significant inventory of finished products manufactured specifically for RigMaster Power,” said Dolmaya.” We also have a substantial stock of raw materials purchased with RigMaster in mind. When RigMaster closed, we stood to lose a lot.”

Dolmaya said this led Mobile Thermo Systems and Premm Metal Products to purchase RigMaster Power’s inventory and intellectual property so that the two companies could manufacture and sell RigMaster’s APU directly to clients in the trucking industry at much more competitive prices.

New units will be at least 15 percent cheaper than the original, but as for the exact price point, that has not yet been determined. He said they will be cheaper because of a reduction in overhead since his company is now the supplier, manufacturer and distributor. Dolmaya said there will be a warranty on new units, but it will be “negotiable.”

“The standard will be a two-year warranty,” he told Land Line. “However, if they want to make a deal in price, they can accept a one-year warranty.”

Dolmaya told Land Line the initial plan is not to honor outstanding warranties for now, as they only purchased the assets.

In regard to dealers, Dolmaya said, “Now, quality, trusted RigMaster parts will still be available to more than two hundred dealers in Canada and the United States.”

Dolmaya is referring to a network of dealers established by RigMaster Power Corp., one that became one of the largest and most experienced dealer support networks in the APU industry. Dolmaya said re-creating that large dealer network originally set up by RigMaster is an important part of his plan, and he is working hard to find those dealers and reestablish working relationships.

Land Line contacted a handful of those dealers. None were ready to make official comments on Dolmaya’s business plan, although a number of them have made it clear they plan to take care of their customers.

Mobile Thermo Systems Inc. designs, manufactures and sells air-conditioning systems for trucks and off-highway vehicles. Premm Metal Products manufactures customized sheet metal products for various industries, including machining. Both companies are based in Toronto, Canada.

– By Sandi Soendker, managing editor
sandi_soendker@landlinemag.com

News Clerk Kerry Evans-Spillman contributed to this report.

 

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