FERGUS, ONTARIO (June 10, 10 a.m. EDT) — Nexgen Hose Inc. is expanding its hose and tubing plant in Fergus to meet growing demand for thermoplastic products.
The private company is spending about C$650,000 (US$425,000) to build a 9,000-square-foot addition to its production plant and to install more equipment, said David Tomlinson, president and majority owner. The addition should be complete by late November, he added in a telephone interview.
Nexgen recently installed a fourth extrusion line and early next year will add another, according to Tomlinson. The extra floor space will give it room for two more lines and allow it to bring in-house some storage space it has been renting off site, he said.
Tomlinson founded Nexgen in 1998. He said the firm is growing partly because cross-linked rubber is being replaced in hoses by thermoplastic elastomers and thermoplastic vulcanizates. The newer materials provide cleaner hose and tubing, allowing new applications, he said.
The company's offshore sales are another growth area, aided by promotion via the Internet, he said.
For the year ended Sept. 30, Nexgen recorded sales of C$3.5 million (US$2.3 million), up about 40 percent. The firm extrudes elastomers, vinyl, nylon and polyphenylene oxide.