CPI Plastics Group Ltd. is boosting production capacity by 22 percent for its eon-brand wood replacement product, providing the firm with an additional C$15 million to $20 million (US$10 million to $13 million) in annual sales potential.
The expansion means that CPI, based in Mississauga, Ontario, will put seven more lines into production this month at two extrusion plants in its headquarters city. The company already has added four lines since the beginning of the year, said President Ron Mitchell.
``Our eon product just keeps growing and growing,'' Mitchell said in a June 13 telephone interview. ``To meet current demand, we've added these machines, and, looking down the road, we'll potentially add more as we ascertain these markets.''
Spa-cladding is one product that is taking off faster than CPI had forecast, Mitchell said. ``Since a number of large manufacturers started showing their tubs with our cladding, demand has skyrocketed,'' Mitchell said.
CPI runs more than 100 extrusion lines in six facilities.
CPI has also consolidated some of its custom profile operations during the past year. The company sold its Bolton, Ontario, plant in May. The facility was CPI's original location, where it extruded products for the industrial sector. The firm phased out extrusion production at that site in December, moving 12 lines to a plant in Mississauga.
``The industrial products business is tougher than the eon business, but it's improving month by month,'' Mitchell said.
CPI is attacking new markets, such as consumer electronics.
``We've initiated some new programs with the large-truck industry,'' he said.
Mitchell said CPI's largest production facility in Mississauga is at full capacity with 34 lines.
``We're at 733 employees compared to 531 the same week a year ago,'' he said. ``We've added about 180 employees and we're still actively recruiting.''
In its first-quarter filing, CPI reported sales of C$27 million (US$17 million). The firm had 2001 extrusion sales of US$53 million, with five plants in Mississauga and a film plant in Pefferlaw, Ontario.