DEFOREST, WIS. (Nov. 17, 1 p.m. ET) — Evco Plastics is planning to spend more than $4 million to expand its Oshkosh facility by 30,000 square feet and add more machinery. It expects the construction to be completed by March 2012.
“We have several existing customers that have given us new projects and we getting ready for that,” said President Dale Evans, in a Nov. 16 telephone interview.
He said the expansion will boost the size of the facility to 100,000 square feet and is designed to strengthen and increase the infrastructure so that it can handle larger molds and bigger equipment. It will include a 100 ton crane.
“The initial stage is $2 million, but we expect to spend twice that much when it is all done,” Evans said.
The company said that the construction is being handled by general contractor Cardinal Construction Co., Inc. from Fond du Lac, Wis.
Evco has had operations in Oshkosh since 1976. It built the current plant in 2003. The company expects to add as many as 20 employees within the next two years.
Overall, Evco employs 800 in 10 manufacturing plants that span from Deforest and Oshkosh, Wis., to Calhoun, Ga.; Monterrey and Juarez, Mexico; and Shenzhen, China. It has three plants in Deforest, including its headquarters.
Evans said that a slow growth environment is actually conducive to strong growth for a molder like Evco.
“Companies redesign their products and many times put more plastics in them and that's good for us,” he said.
Evco serves original equipment manufacturers worldwide in industries such as medical, packaging, agriculture, construction, lawn and garden, industrial and appliances. Its facilities contain a total of 140 injection molding machines, ranging from 28 tons to 3,300 tons.
Evans said that the company has been doing a lot of work in packaging and its agriculture business has also been strong.
“We're trying to stay diversified in the markets we go after,” he noted.