Polyethylene film and sheet extruder Poly Plastic Products of Delano, Pa., is expanding its two production facilities and looking for a site for a third plant.
The firm, an operating unit of Lyndhurst, N.J.-based Sigma Plastics Group, has invested more than $4 million for additional extrusion equipment during the past two years and is about to complete a $2 million expansion of its facility in Marshville, N.C., said President Steve Redlich in a recent telephone interview.
``We have at this point formulated our strategy for years to come,'' Redlich said. As part of that plan, the company is looking for a location for a new plant in the Midwest. ``We have our feelers out there,'' he added.
In the meantime, the firm is doubling the size of its plant in Marshville, N.C., adding 50,000 square feet. The plant has added three blown film lines in the past 18 months and plans to put in three more in the next 18 months.
At its Delano site, the company is breaking ground on a 31,000-square-foot addition, and officials will add two more high density PE film lines in the next year.
``We've been bucking the odds, so to speak,'' Redlich said. The company has grown 400 percent since 2000, when Sigma founder Alfred Teo took a 50 percent interest in Poly Plastic.
The company wants to have a third site within three years, when it plans to reach an overall capacity of 100 million pounds.
``The 400 percent growth is very real, during a time period when a lot of our competitors have consolidated,'' Redlich said. ``We've been aggressive with our pricing structure. Our sales force has been very aggressive in the marketplace. Competition is very intense. You really need to have the discipline to count the coffee cups and watch your expenses very carefully.''
Margins are squeezed, he said. In addition to resin pricing, other expenses are factoring in greatly like freight and electricity.
Redlich said he has been president of Poly for 26 years - and the past six years, in partnership with Teo, Poly has grown more than it did in the first 20 years.
Poly Products employs 172 and plans to add 30 with the expansion. It specializes in sheeting, bundling films and bags for industrial packaging like shrink wrapping, carton and bin liners, and pallet and furniture covers.