Newly minted PET custom bottle producer MPI Packaging Inc. has invested in 20 stretch blow molding machines for its recently opened Canadian plant and is looking for sites in the United States.
The Mississauga, Ontario-based company formed in August, opening a 95,000-square-foot facility to blow mold bottles for midvolume, cold-fill applications. The company specializes in two-stage, reheated and blown bottles for alcoholic beverages, motor oils, carbonated beverages, water and other custom applications.
In January, Robert Megna, former president of Mississauga-based Pet-Pak Containers Inc., joined the company as president and chief executive officer. In April, MPI partnered with Toronto equity firm HBD Inc., which is providing capital for growth, Megna said May 20.
MPI has bought five blow molding machines from Mag-Plastic Machinery Inc. during the past six months and plans to install 15 more between now and the end of 2005, Megna said. The company has invested about C$8.5 million (US$6.1 million) in the equipment and other resources, said Chief Operating Officer Ronald O'Brien, who also is a partner at HBD.
MPI plans to add two or three blow molding plants in the United States that would follow the same model: fairly small facilities with about 20 low-cavitation, stretch blow molding machines, O'Brien said. The company is looking for locations in several areas, including the West Coast and the southern United States, to build plants, he said.
``We need to be close to those customers so we are not shipping air,'' O'Brien said.
The company expects to record more than C$10 million (US$7 million) in sales this year but to double that in each of the next several years, O'Brien said.
The new company also represents a reunion of sorts for former Pet-Pak managers and engineers, Megna said. Pet-Pak was purchased in 1997 by Consumers Packaging Inc. of Mississauga in 1997, and Consumers was bought by Amcor Ltd. in 2002.
``We're an old team but a new player,'' Megna said. ``We have a lot of previous history and relationships in the industry.''