TORONTO - Pet-Pak Containers plans to spend C$4 million (US$2.9 million) during the next year to expand blow molding capacity. The Mississauga, Ontario, firm has landed several new contracts and needs more capacity, according to Robert Megna, Pet-Pak's president. It is negotiating to buy a second facility nearby and will move water and soft drink bottle operations there and keep its existing plant for custom orders, Megna explained in a telephone interview.
Megna said Pet-Pak's new multiyear contract to supply PET liquor containers to Bacardi-Martini Canada Inc. is one example of the firm's sales growth. Bacardi-Martini has been importing most of its PET bottle needs from several suppliers but Pet-Pak will simplify the beverage firm's sourcing by producing all five container types it buys.
Megna claimed Pet-Pak is a low-cost producer focusing on low-to medium-volume accounts. It uses modular tools for quick change-overs and offers design, engineering, mold-building and other services to attract customers that want ``one-stop shopping.'' He claimed a high level of service is helping Pet-Pak capture blow molding business that went to the United States after NAFTA came into effect.
Pet-Pak initially will install four Dynaplast blow molding ma-chines in its second facility and will add more Dynaplast and Mag-Plastic machines by the end of next year to boost production capacity to 200 million units per year. Pet-Pak now buys PET preforms but it might add preform molding capability as well, according to Megna.
It also is looking at entering heat-set PET bottle production for hot-fill applications. Its new facility, at 60,000 square feet, will more than double its manufacturing space.
Pet-Pak's sales last year doubled to C$12 million (US$8.8 million) and Megna predicts they will double again by 1997. It now has 10 blow molding machines making PET containers for water, soft drinks, pharmaceutical, chemicals and other markets in sizes from 50 milliliters to 3 liters.
Megna was a founder of Pet-Pak six years ago after more than 10 years experience in automotive and packaging blow molding. He has two partners in Pet-Pak.