MPI Packaging Inc. has started a second PET blow molding operation to expand its geographic base.
The Mississauga firm opened a 30,000-square-foot, leased plant in Riverside, Calif., to serve the Los Angeles market. The plant replaces production MPI had subcontracted to blow molders in the region for the past few years.
MPI started with two Mag-Plastic blow molding machines in Riverside and expects two more to be delivered by August and September, respectively. In total, the firm is spending about C$1 million (US$977,000) on equipment for the new plant. Some new equipment will go to its Mississauga facility to free up equipment there for Riverside, said MPI President Ron O'Brien.
``[The new plant] will allow us to control production and quality,'' O'Brien said by telephone. ``Our growth justifies it.''
MPI now employs 15 In Riverside but the number is expected to rise as the plant will be devoted to production. MPI will use off-site warehousing.
O'Brien said MPI specializes in low-cavity molds. That makes it easy to start a customer on custom bottles, and production then can be ramped up by using more than one blow molding machine on an order. Much of the firm's business is in liquor, wine, personal-care and energy-drink markets. It buys commodity preforms on the market but subcontracts the molding of specialty preforms, O'Brien said. It exclusively blow molds PET.
MPI logged sales of about US$20 million last year. It employs about 90 in Mississauga.