AT Plastics Inc. plans to build its first U.S. plant to make industrial shipping sacks and specialty films for food and other packaging, the company announced Nov. 22. Jim Donaghy, AT vice president of finance, said he expects the Clinton, Tenn., facility to begin production in the first quarter of 1997 because of long delivery times for blown film extrusion, printing and bag-making equipment. The Brampton, Ontario, firm has not chosen equipment suppliers, Donaghy said in a telephone interview.
Clinton has a moderate climate that is beneficial for film extrusion, and a trained labor force and good location for transportation throughout the southeastern United States, the major market for the new plant, Donaghy said. He said local government incentives were comparable to other potential Southeast locations, but they were not key to AT's site decision.
AT probably will use industrial revenue bonds to finance con-struction.
Donaghy did not disclose the cost of the 18-acre site or the new plant. It is part of a C$20 million (US$14.8 million) expansion program AT announced in July. The program's other major project is slated to boost wide-width horticultural and agricultural film capacity at AT's Ed-monton, Alberta, facility.
The firm estimates the expan-sions could increase annual sales by C$50 million (US$37 million). For the nine months ended Sept. 30, the company had sales of C$155.3 million (US$114.9 million) and profit of C$21.2 million (US$15.7 million).
Donaghy said AT continues to evaluate expansion possibilities for its ethylene-based resins, now made in Edmonton. It secured an option for more ethylene supply to Edmonton, but it also continues to evaluate joint venture and alliance opportunities. AT said it hopes to make a decision by March.
