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April 17, 2000 02:00 AM

CPI Plastics Group considers next plant

Shannon Ledson PLASTICS NEWS STAFF
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    MISSISSAUGA, ONTARIO — Canadian custom extruder CPI Plastics Group Ltd. may build its next plant in the United States, possibly by the end of the year. Talks, however, are in the early stages and nothing has been finalized, President Ronald Mitchell said.

    Forecasting C$100 million (US$68.2 million) in sales this year for the Extrudawood manufacturer, Mitchell said additional capacity probably will be necessary.

    Mississauga-based CPI opened a 60,000-square-foot plant last summer strictly to manufacture Extrudawood decking boards.

    That plant has 18 lines running and soon will be at full capacity, said James Leitch, senior vice president.

    CPI licensed Extrudawood from an English inventor two years ago with plans to use it as a replacement for anything made of wood.

    Since being introduced into the window covering, decking and railing markets, the polystyrene foam-based wood substitute has taken off and yielded massive profit for CPI.

    "Our applications for Extrudawood are unlimited," Mitchell said.

    The company plans to target the patio furniture industry and will market Extrudawood as a replacement for wood panels surrounding hot tubs, Leitch said.

    Deals also are in the works to license Extrudawood to manufacturers in Germany, Singapore and Japan, Mitchell said.

    CPI landed its first deal abroad last year when it licensed Groupe Lapeyre of Aubervilliers, France, to use Extrudawood material and technology to make window shutters.

    In related news, CPI also is adding two lines at its blown film plant in Pefferlaw, Ontario, just north of Toronto. The facility has 25,000 square feet of space, but CPI plans to add about 12,000 square feet this year, Mitchell said.

    CPI operates six plants in Ontario with more than 80 extruders and 660 employees. Company sales reached C$70 million (US$48 million) in 1999. CPI was No. 55 in Plastics News' ranking of North American pipe, profile and tubing extruders, with 1998 sales topping US$34 million.

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