AT Plastics Inc. decided to expand film production in Brampton, Ontario, rather than build a facility in Clinton, Tenn.
Separately, AT announced at NPE 1997 that it chose Werner & Pfleiderer Corp. to supply a new, $18 million compounding facility in Peachtree, Ga.
AT said June 23 that expanding in Brampton will save fixed and operating costs, compared to building a plant in Clinton. Meanwhile, it continues to look for acquisition opportunities to give it a rapid boost in film capacity, Jim Donaghy, the firm's vice president of finance, said in a telephone interview.
AT put the Clinton project on hold last fall when it was negotiating a potential acquisition. AT originally targeted Clinton's startup in the first quarter of 1997 when it announced the project in late 1995. It now says the Brampton expansion supplanting it will be on stream this fall. Brampton has enough space to accommodate the extra machinery.
Donaghy did not disclose cost of the Brampton expansion or equipment suppliers. The program and a recently completed expansion of its wide multilayer film operation in Edmonton, Alberta, together will boost AT's film and packaging capacity by about 30 percent and add about C$40 million (US$28.8 million) in annual sales. Brampton also is adding printing capacity for its range of consumer and industrial flexible packaging.
Donaghy said AT remains interested in establishing a U.S. packaging facility but he could provide no timetable for one. It might hold on to the 18-acre Clinton site.
AT's first U.S. facility will be a previously reported specialty compounding plant at Peachtree scheduled to start up in the middle of next year. Werner & Pfleiderer will provide process design and extrusion equipment. Peter Connelly, AT's project manager, said his firm will spend $18 million in the first phase of the project and expand capacity by 1999. Connelly said in a news release that AT chose W&P because of its experience in design and installation of complete compounding facilities.
An undisclosed toll compounder in Illinois is making AT's Flexet specialty compounds until Peachtree starts up.