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January 16, 1995 01:00 AM

NEW HEAD, BY RCG: EURO UNITED INVESTS IN 2ND FACILITY

Michael Lauzon
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    Euro United Inc. plans to open a second custom injection molding plant less than two years after it entered plastics pro-cessing. The Oakville, Ontario, company recently bought a 400,000-square-foot plant in Kitchener, Ontario, and plans to begin molding there by August, Sam Rehani, the firm's president, said in a telephone interview.

    Euro will invest an undisclosed amount in the plant to equip it with as many as 50 presses this year. Rehani said the Oakville plant also will have a blow mold-ing line and will use gas-assisted injection molding technology.

    Rehani said his firm probably will buy 750-ton and bigger Engel presses to mold consumer products such as patio furniture and auto parts. Kurt Fenske, Engel Canada Inc. vice president of sales, said his firm has been negotiating press sales with Euro but had not received a firm commitment when Fenske was interviewed Jan. 11.

    Rehani said Euro's Oakville plant and its 14 presses are operating at capacity making consumer products and auto parts. He did not disclose customers.

    Euro began molding in November 1993 in a 65,000-square-foot plant in Oakville. It expanded the facility to 154,000 square feet last year and bought nine more Engel presses, including a 1,000-ton machine displayed at NPE '94. Before the molding venture, Rehani imported and exported plastic and other products.

    The Kitchener plant will mold mainly polyolefins but will dedicate some capacity to PVC. Euro will install new auxiliary equipment, overhead cranes, silos and other equipment to convert the plant to a plastics facility. It has a 30-foot-high manufacturing area and 28 shipping doors.

    Rehani said his firm offers packaging, warehousing and distribution services. Canada, the United States, Europe and the Far East are its major markets.

    Euro's 1994 sales exceeded C$8 million (US$5.68 million).

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