Film converter Mid-States Plastics Ltd. plans to spend at least $2.5 million to build a plant in the Chicago suburb of Hanover Park, Ill., a move that gives the small firm room to double its size eventually.
General business growth and the desire to expand into some nonplastic products are fueling the company's move from its existing, 27,000-square-foot building in the nearby suburb of Bensenville to the new plant, which will be 40,000-44,000 square feet, said Craig Orzolek, senior vice president.
Business is growing in the firm's main area — converting polyester or vinyl sheet plastic to film that printers can use for shooting negatives and other parts of the printing process, he said.
``[Growth] is in all segments,'' Orzolek said. ``We just seem to be getting more and more.''
But the rise of desktop publishing and other digital printing also is pushing the firm to branch into supplying specialty paper for products such as inkjet printers, Orzolek said.
The new facility, which should be finished by September, will cost about $2.5 million, and the company plans to spend another $500,000 on new plastic converting equipment, he said.
Mid-States has three sheeters and four cutters that convert and package the film for printers, and it plans to add two more sheeters, three or four cutters and some other equipment, he said.
The expansion will add 10 employees to the company, giving it 33, Orzolek said.
The site also includes enough land to expand the plant to 60,000 square feet, he said.
Much of the capital for the expansion comes from $1.7 million in low-interest industrial revenue bonds from the village of Hanover Park, and the company is hoping other local governments will kick in as much as $500,000 more, he said, adding that the company will fund the remainder.
The firm chose Hanover Park because of the cost of land, and selected the spot before it knew the revenue bonds were available, Orzolek said.
``More or less, we had the spot picked out,'' he said.
Mid-States was founded in 1984 by John Miller. It is still family-owned, and is run by his son, John Miller Jr., who is president and chief executive officer. It has sales of about $6.5 million a year, company officials said.