Cougar Bag Inc. plans to start work on a new building in an Indianapolis suburb that will give the company the room it needs to grow.
The Indianapolis-based custom bag extruder will open a 30,000-square-foot facility in Mooresville, Ind., in July, moving from its existing plant in downtown Indianapolis, said co-owner Randy Langdon on Dec. 3.
The new facility will give the company 5,000 square feet of additional production space, plus higher ceilings to accommodate its extrusion lines, Langdon said. The plant will have a 40-foot-high ceiling in one section and a 24-foot ceiling in another, he said. The current ceiling only reaches as high as 15 feet.
``We can only run our extruders at half speed right now,'' he said. ``We can increase production without having to add more equipment.''
The company plans to spend about $1.2 million on the new building. Construction will start in March, Langdon said. The company will receive about $100,000 in local tax breaks, he added.
The building is the most significant move in the 10-year history of the company, founded by Langdon and two partners. The company has leased its current site, expanding to its size of 25,000 square feet four years ago.
Cougar makes clear and colored polyethylene bags, mainly for industrial and automotive applications.
The company currently has six extrusion lines and 10 bag machines and plans to add some auxiliary equipment after making the move, Langdon said.
The expansion could help Cougar grow in sales by adding to its capacity, he said. The company hopes to reach $4 million to $5 million in annual sales within the next two years, double its current sales.
``We're in our biggest growth stage,'' he said.