AT Plastics Inc. will establish a new southern U.S. packaging plant as part of a C$20 million (US$14.7 million) capital spending program. The Brampton, Ontario, firm did not disclose the new plant location in a July 27 news release, and company officials were not available for comment last week.
AT's packaging business includes specialty industrial shipping sacks and high-performance films for courier pouches and barrier food packaging.
AT President Geoff Clarke first revealed his firm's plan to manufacture in the southern United States at an analysts' meeting in Toronto in November.
AT also said it will increase capacity at its Edmonton and Westlock, Alberta, plants that make specialty films for agriculture and horticulture markets. Clarke said last year that AT holds about 35 percent of the fast-growing North American market for greenhouse and nursery films.
AT expects the expansions to support extra annual sales of C$45 million to C$50 million (US$33.1 million to US$36.8 million). The company reported sales of C$101.4 million (US$74.5 million) for the six months ended June 30, up from C$83.8 million (US$61.6 million).
AT will finance the expansion from internally generated funds.
