Winpak plans an extensive expansion plan to capitalize on demand for advanced packaging.
The Winnipeg, Manitoba, firm announced a five-year capital investment program that includes US$60 million in spending this year alone. That figure is twice the capital expenditures in each of 2010 and 2009.
There's a demographic shift, said Winpak President and CEO Bruce Berry. As people get older and as more women work, more food packaging is used, he said in a telephone interview from Winpak's Winnipeg head office.
Winpak will focus on advanced technological requirements, the company stated in a news release about its latest financial results.
Central to the plan is a new manufacturing plant for rigid packaging, coextruded sheet and thermoforming. Three undisclosed locations are under consideration in the central and eastern United States, Berry said. Winpak plans to decide on a site within six weeks and expects to invest about $30 million in the project over two years.
The Winnipeg facility will get a major new extrusion line that mainly will produce vacuum packaging for meat and cheese when it is up and running in the fourth quarter of 2012. As well, expansion will continue at Senoia, Ga., to boost output of shrink packaging. That plan entails adding space and extrusion lines. In Montreal and Pekin, Ill., Winpak will add more laminating, printing and die-cut capacity for lidding.
The company said it plans to will conduct the expansions without incurring debt.
Besides internal growth, Winpak is open to acquisition opportunities in food and health care and is evaluating possibilities.
There has to be definite synergies, Berry said. We're very selective. We're strategic buyers.
The public firm had profit of US$52.6 million for 2010, up from US$42.9 million in 2009; and sales of US$579.4 million, up from $506 million. Biggest volume improvements were for biaxially oriented nylon film and specialty films, though gains were recorded for lidding, rigid containers and modified-atmosphere packaging.