TORONTO—Euro United Corp. of Oakville, Ontario, plans to establish its first U.S. plant in Buffalo, N.Y. The facility will produce outdoor and indoor plastic furniture, housewares and other consumer products, according to Euro United President Sam Rehani. Euro United will start production in June in a leased, 700,000-square-foot facility in Buffalo's port area, Rehani said in a telephone interview. It expects to reach full production in mid-1998 with 60 molding machines, mostly Engel injection presses, but also including some blow molding machines.
Injection presses will have clamping forces of 750-1,500 tons. Rehani said equipment purchases and building renovations could cost as much as US$100 million, which Euro United will finance privately, mainly from undisclosed shareholders.
Rehani admitted the furniture and housewares markets are tough, but said he thinks his firm can expand because it has an ``acceptable'' cost of manufacturing. Its Oakville facility has 35 machines — mainly Engel injection presses as large as 1,500 tons — as well as blow molding machines. It makes furniture and automotive parts.
Euro United chose Buffalo because it is about an hour's drive from Oakville and represents a U.S. production base. Rehani said his firm canceled a 1995 plan to establish a second Canadian facility in Kitchener because it was too close to Oakville and would not have expanded his firm's geographic reach. Instead, Euro United expanded at Oakville and turned the Kitchener facility into a warehouse.
Rehani did not disclose sales of the closely held firm, which began molding in Oakville in late 1993.