But that is only one reason that Royal Plastics needs to built a 400,000-square-foot manufacturing facility, invest in new equipment and hire more than 800 workers to compete in the auto and furniture industries on a global basis.

Kolk told MiBiz that the expansion would create an economy of scale that would put the second tier supplier into a more competitive position. "It gives us capabilities that we might not have today," said Vander Kolk. "As we look forward, we have to look at the whole value-added proposition and be ready to ship more of a complete unit. This (expansion) will make us more capable of doing that."

IRN Inc. auto industry analyst Mike Wall told MiBiz that Vander Kolk's line of reasoning is absolutely correct. "What you are seeing in this industry is more responsibility being pushed down the tier levels. A lot of the engineering, development and technology responsibility is being put on Royal Plastics and other suppliers in their tier by folks like JCI and the other tier ones."

Wall said Royal Plastic is well known as a strong player in the research and development arena, "and this is just another benchmark of their growth."

Size is not the only factor in global competitiveness, according to Wall. But he said it certainly does help.

"You can be nimble and small, as I would describe Royal, but size does matter because you are developing additional competencies," said Wall.

More evidence that the expansion simply had to happen if Royal Plastics is to grow came from Lansing. According to an internal Michigan Economic Development Corp. (MEDC) memo, Royal Plastics has "significant growth opportunities and new customers" that requires an expansion of the company's current capabilities.

Vander Klok had said that the expansion could be completed in Michigan or Tennessee. The prospect of the company moving to another state prompted the MEDC to grant an incentive package to Royal Plastics that includes a Single Business Tax credit of approximately $13.6 million over 20 years.

The construction of a new manufacturing facility will occur in two-phases of 200,000 square feet each, according to Royal Plastics Vice President and co-owner Dick Klamer. He told MiBiz the new plant will be built adjacent to the company's Quincy Manufacturing facility in Jamestown Township, across the street from Royal Plastic's corporate headquarters.