Encore Industries Inc. will vertically integrate its thermoforming operations by installing its own sheet extrusion line.
The firm expects the sheet line to be running by the end of the month processing high density polyethylene, PET and other materials. Encore will install the extruder in Cambridge, Ohio, where it is basing a new operating division, Extrusion Specialties.
Encore Chief Executive Officer Timothy Rathbun said in a telephone interview that his firm is installing the sheet line mainly to reduce costs. He also expects it will improve consistency and quality compared with purchased roll stock. Encore primarily will make paint sundries, such as thermoformed trays, from its captive roll stock. Other products include caulking guns, paint applicators and several hundred other home-improvement hardware items.
The extrusion line is the latest step in an ongoing expansion under way at Encore operations. Last month it installed the third thermoforming line in a six-month expansion program at its Remer, Minn., plant. Up next is more injection molding capacity for its Cambridge and Byesville, Ohio, plants later this year.
Encore will fund its latest expansion plans through an industrial revenue bond, for which it recently received approval for as much as $5.5 million. Rathbun said the expansion program was spurred in part by the improved business environment created by federal and state tax and economic development policies.