SYNERGISTICS BUILDING COMPOUNDING PLANT

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TORONTO — Synergistics Industries Ltd. plans to build a compounding facility in Denver to capitalize on growing markets for specialty polyethylene resins in pipe and wire and cable.

The Mississauga, Ontario, firm said May 28 it will invest US$5 million in a plant designed to make its Syncure moisture-curable ethylene vinyl silane copolymer compounds. Such compounds are replacing poly- butylene in potable water distribution and radiant heating applications. When mixed with heat-resistant additives they also are suitable for sprinkler systems.

Synergistics President A. Kim Aagaard said the project initially will double his firm's capacity for Syncure. It spent about C$1 million (US$720,000) a year ago to expand Syncure capacity at Valleyfield, Quebec, its only facility that makes the resin. The Denver capacity will come on stream in mid-1998.

Aagaard said Denver will start with one large extrusion line in a leased, 31,000-square-foot building. His firm will split the investment about equally on retrofitting the building and purchasing equipment. He declined in a telephone interview to provide equipment details, but said Synergistics will not use a large single-screw extruder as it does in Valleyfield.

Denver will supply the western half of North America while Valleyfield focuses on markets in the East, Aagaard said. Denver is close to raw materials suppliers and customers and its dry climate is well-suited to making compounds that are sensitive to moisture. Synergistics considered making Syncure at its Willis, Texas, compounding operation, but it did not meet all criteria.

Synergistics is the second Canadian firm to announce moisture-curable resin compounding investments at new U.S. facilities. Earlier this year, AT Plastics Inc. of Brampton, Ontario, said it will spend about C$25 million (US$18 million) in Peachtree, Ga., to build a PE copolymer plant due to start up next year. That facility will supply compounds for pipe and wire and cable.