Recycling loan aids expansion at Canyon Plastics

By Roger Renstrom
Correspondent

Published: July 20, 2012 6:00 am ET

Related to this story

Topics Packaging, Sustainability, Materials, Injection Molding, Blow Molding, Recycling, Suppliers

VALENCIA, CALIF. (July 20, 1:25 p.m. ET) — Canyon Plastics will use a $1.2 million loan from CalRecycle to help it relocate to a larger plant in Valencia, Calif., and finance equipment purchases, according to Kirit Gijera, Canyon’s president and CEO.

Under the loan’s terms, the custom injection and blow molder has agreed to divert 582 tons of plastics annually from California landfills, in addition to the 506 tons it already diverts, according to the CalRecycle application. It also has committed to creating 36-42 more jobs, most of them within the first year. Currently, Canyon employs 86.

CalRecycle — the state of California’s Resources, Recycling and Recovery Department — announced that it had approved the 15-year recycling-market development-zone loan at a July 19 meeting in Sacramento.

Commercial real estate brokerage NAI Capital of Santa Clarita, Calif., said Canyon purchased a 110,950-square-foot industrial building on 5.3 acres in December 2010, in a transaction valued at $7.75 million. The new site is just over a mile from Canyon’s longtime operation in Valencia, comprising a 30,000-square-feet building, which the firm owns, and leased warehouse space totaling 75,000 square feet. All of the facilities are in an unincorporated portion of Valencia in Los Angeles County.

CalRecycle expects to fund the loan by the end of July.

Canyon has relocated its warehousing and has begun moving equipment to the new plant, with plans to start production in September. The company said it may retain ownership of its former plant.

Canyon operates eight injection molding machines of 55-400 tons and 14 blow molding machines with the largest shot size capacity being 5 pounds. No decisions have been made yet regarding equipment purchases.

Gijera declined to disclose sales figures.

Canyon provides concept-to-completion services ranging from design, prototyping, mold making and production through distribution for the nutritional, nutraceutical, aerospace, medical and agricultural industries. Its auxiliary services include hot stamping, sonic welding, screen printing, pad printing, assembly and customized packaging.

Among its operations, the company can capture a job’s remaining hot-runner resin and use it for the same customer to meet a specific demand for post-consumer recycled content in a product, Gijera said. “We use our own material for our own customers,” he said.

The company uses virgin resin to mold critical-care parts.

A 1989 state law established the recycle-market development-zone program through which CalRecycle loans funds to eligible businesses and non-profits in designated zones. CalRecycle, received Canyon’s application last August. In the request, Canyon said it would use the loan to finance equipment purchases and capital improvements, facilitate its relocation and provide working capital.

Gijera’s Unistar Enterprises Inc. acquired Canyon Plastics in November 1998.


Comments

Recycling loan aids expansion at Canyon Plastics

By Roger Renstrom
Correspondent

Published: July 20, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

PSB Industries acquires plastic closures specialist

July 31, 2014 3:47 pm ET

French packaging manufacturer PSB Industries has signed an agreement to acquire C+N Packaging Inc., which specializes in plastic closures for...    More

PE suppliers go after oxo-biodegradable technology in Mexico

July 31, 2014 1:12 pm ET

Mexican industry defends itself, calling claims 'misleading'    More

Bioplastic created using rice starch

July 31, 2014 10:40 am ET

The new transparent, biodegradable material has a high degree of mechanical strength and good thermal resistance.    More

Spain's ITC Packaging acquires Coveris rigids plant

July 31, 2014 9:59 am ET

International packaging group Coveris Holdings has sold its Spanish business Coveris Rigid Spain, including an injection molding plant, to the...    More

Image

New technology molds plastic with consumable liquid

July 31, 2014 9:40 am ET

A new blow molding and filling technology called LiquiForm has been announced that uses pressurized consumable liquid instead of compressed air to for...    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events