Nelmar Security Packaging Systems Inc. is entering film extrusion at its new Montreal facility.
Nelmar is installing a three-layer Varex blown film line in its new plant and plans to begin operating it Nov. 1. Windmoeller & Hoelscher Corp. of Lincoln, R.I., supplied the film line. The new line will replace most of Nelmar's purchased film requirements, according to President Neil Freder.
Nelmar specializes in patented, tamper-evident systems for transferring currency, checks and other valuables. It has been buying polyethylene and other films and converting them into secure packaging on its 20 bag-making machines. Customers include banks, retailers and armored-car companies.
``We felt that we were best-suited to achieve our goals by becoming vertically integrated and producing film in our own facility,'' Freder explained. ``It became apparent to us that in order to be the most cost-efficient producer of our products, we would need to have greater consistency in the films we were using.''
The new line can make film 71 inches wide. Nelmar plans to add up to three more blown film lines within the next year, allowing it opportunity to diversify, Freder said in a telephone interview.
Freder said Nelmar has invested about C$12 million (US$10.7 million ) in its current expansion round. The investment included moving from a 75,000-square-foot building into its current one with 147,000 square feet of manufacturing and office space. The new building features a custom-built section for film extrusion that eliminates dust and other contaminants. The section can accommodate four blown film lines. As well as installing the new Varex film line, Nelmar replaced three older printing presses with a large, gearless press and upgraded bag machines.
Nelmar could spend another C$6 million (US$5.3 million) to C$7 million (US$6.2 million) during the next year for further expansion, including up to three more film lines. Freder said the company has decided to add a second, gearless printer in the period.
Nelmar's secure packaging contains special tapes and closures that alert officials to tampering. For example, tapes indicate whether heat or cold has been applied to the package to render adhesives ineffective, Freder said. The tamper-evident technologies were all developed in-house by Nelmar.
Nelmar employs about 150.