CPI Plastics Group. Ltd. is closing its headquarters, which includes a custom profile extrusion plant, and moving to a 100,000-square-foot plant that opened in February.
The company will close the plant and headquarters, in Mississauga, Ontario, in March, according to spokeswoman Carolyn Morris. The new plant is also in Mississauga.
CPI said it expects to save C$2 million (US$1.7 million) annually from the plant consolidation.
Morris said plant employees have been told about the closure but CPI has not yet decided how many workers it will lay off. The company already is saving C$1.5 million (US$1.3 million) from other recent staff cuts.
CPI's custom sales, including window fashion products and industrial extrusions, rebounded in the third quarter after a sluggish first half of the year.
The custom division's sales grew 8.3 percent to C$16.2 million (US$13.7 million) in the quarter. For nine months, custom sales at C$43.3 million (US$36.5 million) were 3.9 percent below the year-earlier period.
Sales of CPI's eon-brand extruded polystyrene wood substitute were the main driver in the company's recent growth.
Sales of eon extrusions for decking, fencing and spa cladding accounted for about two-thirds of CPI's sales increase in the third quarter to C$50.1 million (US$42.2 million) from the C$41.2 million (US$34.7 million) logged a year earlier.
Company officials said in a recent teleconference meeting that they are trying to find ways to offset rising prices for key raw materials polystyrene and polyethylene.
Plastic resin prices were partly to blame for net profit declining 55.2 percent to C$1.1 million (US$927,000) in the third quarter ended Sept. 30.