TORONTO - Royal Plastics Group Ltd. formed a second joint venture in South America to make and market its modular vinyl housing system components. The Woodbridge, Ontario, firm announced May 27 that its partner in the venture is Petroqu¡mica Colombiana SA of Cartagena, Colombia. Each will own 50 percent of the venture, which will supply extruded Royal Housing System components and vinyl window components to fast-growing markets in Colombia, Venezuela, Ecuador, Peru and Bolivia.
Last fall, Royal announced plans to build a housing component extrusion plant in La Plata, Argentina, with an undisclosed partner.
Royal spokesman Mark Badger said Royal and Petroqu¡mica will build the Cartagena plant using Royal's own housing system components, originally designed for residential housing. The modular vinyl components are being used to build homes, schools, churches and factories in more than 40 countries, Royal said.
Badger said Royal's Argentine plant now under construction also will be based on the housing system components.
Royal and its Colombian partner will build a 100,000-square-foot facility in Cartagena scheduled to start production in early spring of 1997. Badger said details on cost and capacity still are being worked out.
Petroqu¡mica Colombiana is a major PVC resin producer in Cartagena. It and Royal have spent more than a year developing the Colombian market. Their work included a pilot project that constructed about 60 homes in Bogot and Cartagena.
Rodolfo Gedeon, Petroqu¡mi-ca's president, said in a news release that Colombian builders like the Royal system and see it as a way of quickly providing much-needed housing in the country.
Royal reported sales of C$264 million (US$192.7 million) for the six months ended March 31, up 13 percent from the same period last year. Profit was C$22.1 million (US$16.1 million), up 45 percent.