TORONTO - Royal Plastics Group Ltd. plans to build an extrusion plant in La Plata, Argentina, to make vinyl components for its modular housing system. Royal has built hundreds of demonstration houses around the world based on the Royal Housing System. The Sept. 5 announcement is the first time the Toronto extrusion company has revealed firm details for an overseas plant to make components for local markets.
Royal bought 15 acres and will begin construction early next year. Spokesman Mark Badger said his firm targets a summer 1996 opening for the 60,000-square-foot plant. He said cost, capacity, number of extrusion lines and other details still are being worked out.
Badger said Royal will have an equity partner in the Argentina operation but he would not disclose the partner or level of equity. Royal also has a joint venture agreement in Spain and memoranda of agreement with potential partners in eight other countries.
Royal has about 400 initial housing system orders worth US$5.5 million from Argentina's private and public sectors. It will produce components in Canada until the La Plata plant begins operation and it expects additional Argentine orders in the next few months.
Badger said a Royal plant in the Toronto area dedicated to the housing system will begin production in December.