TORONTO-Polyethylene bubble products manufacturer Polyair Inter Pack Inc. of Toronto plans to spend about C$9 million (US$6.7 million) in several expansion programs during the next two years. Polyair raised about C$19.2 million (US$14.3 million) in its initial public offering that closed in mid-April. The firm's chief financial officer, Paul Nicoletti, said Polyair will use part of the raised funds to invest in expansion. It will use most of the rest to repay shareholders' loans.
Cantar/Polyair Inc., Polyair's operating subsidiary, mainly makes bubble packaging and pool products such as solar blankets at Toronto and at five U.S. plants. Its sales for the year ended Oct. 31 were C$59 million (US$44 million) and its net profit was C$1.9 million (US$1.4 million).
Cantair/Polyair plans to spend about C$3.7 million (US$2.8 million) to establish and equip a new facility in the United States at an undisclosed location and time. It also plans to expand its Youngstown, Ohio, operation, where its U.S. sales office is based, after relocation to a larger facility this year.
Youngstown will add a film extrusion line to reduce the company's outside film purchases. Another major expansion plan is installation of bubble extrusion and related equipment in Atlanta, at a cost of about C$1.4 million (US$1 million). Nicoletti did not provide details. The firm's other U.S. plants are in Carlstadt, N.J., Chicago and Corono, Calif.
Cantar/Polyair makes bubble packaging ranging from wrap to pouches and mailing bags, some of which is multimaterial. Pack-aging accounts for about half of sales.
One process it uses is thermoforming PE sheet and film to create bubble constructions. It also makes bubble wrap directly from PE resin through an extrusion process. The firm recently signed an agreement with film extrusion equipment supplier Alpha Marathon Manufacturing Inc. of Mississauga, Ontario, to supply complete bubble packaging film lines.
Cantar/Polyair's pool business includes blankets, water tubes, vinyl liners and vinyl floats. It recently diversified into polyurethane foam-in-place packaging.