Consumer products and fuel-containment equipment manufacturer Cleveland Tubing Inc. plans to spend $3.2 million for a new plant that will boost its capacity 33 percent.
The company said it will buy new equipment and relocate manufacturing lines from its current facility in Cleveland, Tenn., to a 65,000-square-foot plant in the same city by late next year, said Catherine Boettner, president and general manager.
Cleveland has six extrusion lines, and plans to add an extruder to produce 2- to 6-inch-diameter tubing and another for tubing of one-quarter inch to 31/2 inches in diameter.
The new equipment mainly will be needed to meet projected increases in demand from current customers and to snag new customers, Boettner said. Cleveland makes tubing for consumer nondurable, medical, toy and liquid-fuel containment markets.
The company currently shares a building with sister firm Cullom Machine Tool & Die Inc., but does not have space to expand there, she said. About two-thirds of Cleveland's products are proprietary for its customers, so the firm wanted to stay close Cullom, which makes its corrugators.
Unlike the current building, the new facility will be on a rail line, Boettner said. The plant will have a bulk-handling system for getting resin by rail and plans to put a rail spur directly to the facility in three to four years, she said.
Boettner said the company will hire five to 15 new employees, and is trying to automate as much as possible.