Norwesco Inc. has expanded in western Canada through another acquisition. The rotational molder of tanks bought Nortco Plastics Inc. on Feb. 1 for undisclosed terms. Nortco specializes in rotomolded tanks for the oil and gas industry of western Canada. The Edmonton, Alberta, firm runs four rotomolding machines and had sales of C$2.2 million (US$1.5 million) last year, former Nortco President Tom Podallan said in a telephone interview.
Nortco's emphasis on petroleum-industry tanks for containment, chemicals and other uses is a relatively new area for Norwesco, according to Podallan, who became general manager of the Edmonton operation. Norwesco is running its new acquisition as a separate company, Norwesco Canada.
Norwesco aims to build its market share in western Canada, said Norwesco President Tom Smith.
Podallan predicted Norwesco Canada's sales will grow significantly this year as a result of the acquisition and a pickup in world oil prices.
Higher oil prices mean oil companies spend more on tanks and other equipment as they boost exploration and production efforts.
Podallan also said the Edmonton operation expects to receive orders for products such as septic tanks made by Norwesco at its St. Bonifacius, Minn., headquarters plant and other locations.
Nortco is Norwesco's second acquisition in western Canada in less than a year. Last summer it bought Septic Unlimited Inc., a Winnipeg, Manitoba, rotomolder of tanks that can be buried. More recently, Norwesco bought Quadel Industries Inc. of Coos Bay, Ore., and opened a new rotomolding plant in Hanford, Calif., to replace a former Quadel plant in Porterville, Calif.