Next Generation Films Inc. of Lexington, Ohio, is investing $10 million for a new facility that will be dedicated to five-layer barrier films.
The 45,000-square-foot building will be designed to host four lines, Chief Executive Officer Dave Frecka said in a Dec. 7 telephone interview. It will give the company 25 million pounds of capacity in the next year and a half.
Construction will begin as soon as the Ohio weather allows it in 2007. The first line will be installed by June.
The building will be Next Generation's fourth at its Lexington campus. It has 120 employees and will add 30 more.
``Going to five-layer is a big step for us,'' he said. ``It takes a lot of know-how and knowledge. Just because you have the equipment doesn't ensure success.''
The company has hired Oscar Mascarenhas as a polymer scientist, the first time the firm has had someone in such a position.
``We know who we're going after and why we're going after them,'' Frecka said. The company will make films for meat and cheese packaging. ``We need economies of scale. We need to be the low-cost producer. We have to keep going. We're trying to upscale our mix.''
Frecka said his firm is achieving barrier properties now with five-layer films that it had previously reached with seven-layer and nine-layer films. The firm now is on target to reach $100 million in sales within five years, he said.