PE foam pipe maker plans Nebraska plant

CDC provides extruded, injection molded and rotational molded polyethylene products to the heating, ventilation, and air conditioning market.

The company has developed a fire-retardant, above-ground PE air-duct system, and is foaming PE pipe and rotomolding fittings for underground, large-diameter systems.

CDC is currently manufacturing out of subleased space in Riverton, Minn. All of that capacity will be transferred to Omaha.

The new plant eventually will employ about 200. It will allow the company to bring rotomolding capacity in-house and will open up the large commercial and industrial HVAC markets to CDC officials, who plan to launch larger-diameter products in the new plant. The company is making product as large as 20 inches in diameter, but plan to produce 60-inch product out of the new facility.

“We've already done the development and engineering on all of the parts,” CDC President Jon Jungers said in a July 9 telephone interview. “We just needed the financing.”

The new Omaha plant is being funded partly through federal stimulus money.

The benefits PE provides to the HVAC industry are similar to what is found in the natural gas and potable water markets.

“We're absolutely air- and water-tight,” Jungers said. “That is something that eluded the industry up until now.”

The material is recyclable, won't develop mold and mildew and, Jungers claims, is the best thermally insulated material available for heating and cooling systems.

The HVAC duct market is about $3 billion, with just about $300 million of that below ground. Jungers said he is optimistic about the market potential for CDC's AKduct- and QAduct-brand products.

“We're still a small company just trying to emerge,” he said. “But we're positioned to do great things.”

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