It was less than two years ago that Lollicup USA decided to plant roots in Chino, Calif., in a 300,000-square-foot facility.
Now comes word that the fast-growing provider of plastic cups, deli containers, plastic cutlery and other food packaging is adding another 150,000 square feet of warehouse space.
Sales at Lollicup have grown 40 percent annually and are expected to reach $120 million this year for the company that now employs more than 200.
“Basically, it's just gotten a lot more crowed in there. We're running out of room to store inventory. Our production is going up so quickly, we've been producing so much so quickly, which is good because we need to supply demand. That means demand is good. There's more business, which requires more product, which requires more production, which requires more space. It's a cycle,” spokeswoman Julia Gutierrez said.
The new warehouse space, which the company hopes to open in July, will add more workers, but an exact amount has yet to be determined, she said. That facility, also in Chino, is a few streets away from the company's headquarters.
“Because we're going to have a new warehouse, we're definitely going to need to staff more people,” Gutierrez said.
Space has gotten tight at the company's original facility as more equipment has been installed and sales have increased.
New equipment installed this year includes an extruder as well as a thermoforming machine for PET lids, the company said.
Lollicup, along with its plastic products, also makes and distributes paper foodservice packaging products and Tea Zone brand coffee and beverage supplies.
Overall production capacity of cups and lids at the company is expected to double by the end of the year, CEO Alan Yu said in a statement, going from 80,000 cases of cups and lids per month now to 160,000 cases.
Along with the expansion in California, Lollicup also is looking for space in the Southeastern United States to help the company grow.