Custom injection molder Comptec Industries Ltd. plans to expand into vinyl window profile extrusion by acquiring the assets of a bankrupt firm in Canada's westernmost province from the trustee Coopers & Lybrand.
Comptec agreed to pay about C$1 million (US$743,000) for the assets of BFN Vinyl Pacific Inc. in Parksville, British Columbia, about 60 miles north of Victoria on Vancouver Island. Comptec hopes to complete the deal Feb. 5. It is conditional on Comptec formalizing a final agreement with Business Development Bank of Canada, BFN's former main banker, explained John Cavers, Comptec chairman.
The Parksville operation has four Technoplast extrusion lines and Comptec expects to add another extruder this year. Cavers said BFN went bankrupt about two years after starting operations because it used up its cash during production delays.
Cavers said in a telephone interview that he wants his firm to acquire other vinyl extrusion operations to expand the business.
Comptec has begun working with window manufacturers to develop lighter and more aesthetic window profiles, which it will introduce in the summer. Cavers said his firm can make new tooling at its Surrey, British Columbia, headquarters plant.
He expects management and production efficiencies will help Comptec make the extrusion business a viable one. The market on Canada's west coast is growing, ensuring demand for such construction products. Cavers claimed the vinyl profile facility is the only one of its kind in British Columbia.
Comptec's injection molding plants are in Surrey and in Custer, Wash. Its main customer is Northern Telecom Ltd. of Mississauga, Ontario, for which it molds telecommunications parts and builds tooling.