CPI Plastics Group Ltd. is expanding its eon-brand, wood-substitute profile business and relocating a recently acquired film and bag operation.
CPI will lease a new facility in Mississauga, Ontario, to add eon capacity. It will move into the 105,000-square-foot plant late this year. CPI will relocate its head office in an adjoining, 27,000-square-foot area. The current head office is in a Mississauga facility that CPI will convert into manufacturing and warehousing. CPI Chief Financial Officer Daniel Ardila said the new facility is being built to CPI specifications, but his firm is not interested in buying it.
Ardila said the new Mississauga operation mainly will produce the company's eon polystyrene-based profiles for fencing, spa cladding and other applications. The operation will start with 20 extrusion lines, some relocated from other CPI plants, and it has space to accommodate 40 lines capable of generating C$100 million (US$65.6 million) in annual sales when it is fully operational.
Ardila said by telephone that CPI now has 63 lines dedicated to eon at various plants. Eon production will continue at other plants when the new operation starts. Unlike some competing products, eon is not based on wood-polymer composites.
CPI also said Jan. 23 that it will move the Mid-America Bag operation it acquired last year from North Chicago, Ill., to a new purpose-built facility in Pleasant Prairie, Wis. CPI will begin leasing the building late this year.
Ardila said CPI will vacate the North Chicago site because it has an inefficient layout. The Pleasant Prairie site will start with about 20 extrusion lines, all moved from North Chicago. CPI eventually will expand the plant to a $60 million-per-year operation. Mid-America Bag had annual sales of about US$12.9 million when CPI bought it a few months ago.
The two expansion projects will cost CPI about C$10 million to C$12 million (US$6.6 million to US$7.9 million) in various capital expenditures.