MONTREAL - Intertape Polymer Group Inc. will install polyethylene stretch film production capacity at its Danville, Va., plant, according to Melbourne Yull, the Montreal firm's chairman and chief executive officer. Intertape recently announced it plans to spend US$20 million to enter the North American stretch film market in mid-1996, but it had not disclosed where it would locate production.
Yull said July 11 that his firm chose Danville, where Intertape produces pressure-sensitive polypropylene carton sealing tape, mainly because pallet-wrap film will be sold to the same industrial customers. Danville is also the location of its U.S. warehouse for shrink film that Intertape produces in Truro, Nova Scotia.
Yull declined to disclose the number of stretch film lines or suppliers but said they would be the most modern lines available. He said Intertape will install 100 million pounds of annual capacity, a chunk equal to about 10 percent of the current market.
Intertape has enough PP sealing tape capacity to capture that amount of the North American market, said Yull, who did not disclose figures. It also hopes to get that share of the North American shrink film market and will double capacity for shrink film at its Truro plant this year.
The public firm had sales of C$54.7 million (US$39.9 million) for its first quarter, ended March 31, up from C$38.7 million (US$28.3 million) a year earlier.