MONTREAL - Imaflex Inc. plans to enter multilayer film extrusion by acquiring an operation.
The Montreal film producer now solely does monolayer blown film extrusion but wants to diversify. Buying an existing facility would be easier than converting part of its current plant, according to Joseph Abbandonato, Imaflex president and chief executive officer. He did not reveal any potential candidates in a telephone interview.
Imaflex recently diversified into film metalizing and expanded its monolayer capacity by about 25 percent. In March it bought Canslit Inc. of Milton, Ontario. Last November it started up a new Davis-Standard film line, expanding its capacity to about 20 million pounds of polyethylene film a year. Abbandonato said his company plans to buy another Davis-Standard line this year.
The firm estimates it has enough space in its 55,000-square-foot, leased facility to accommodate 30 million pounds of annual capacity. Imaflex focuses on PE converter film, most of which goes into food packaging. It does most of its business in Quebec, but it wants to expand sales into other Canadian provinces and the United States. Its sales grew 31 percent to C$6.7 million (US$4.4 million) in its first quarter, ended April 30. Profit slipped 6 percent to C$259,000 (US$169,000).
Three investors founded Imaflex in 1994. It went public on the Canadian Exchange in 1998.