Minnesota-based Avantech Inc. will launch phase one of a construction project at a new U.S. site.
The mold maker plans to break ground Sept. 7 for a 43,000-square-foot facility on a portion of a 6.5-acre site in Baxter, Minn., about three miles from Avantech's leased 60,000-square-foot plan in Brainerd. The lease expires in 2017.
Avantech intends to relocate office and administrative functions and computer numerical control tool building capabilities to Baxter from Brainerd during the second quarter of 2016.
The phase-two plan calls for construction of an additional 24,000 square feet at the site in Baxter and, in the next 30 months, moving Avantech's pattern creation, prototype development and cast-aluminum tooling foundry currently in Brainerd.
The entire project is projected to cost $4 million to $6 million, Tom Innis, Avantech vice president of sales and marketing, said in an interview.
Avantech makes tools for the rotational molding, thermoforming and reaction injection molding processes.
Avantech employs about 100 and utilizes lean-manufacturing and cross-training practices to maintain flexibility in completing work requirements on 11 CNC machining centers.
Avantech projects 2015 sales of $12 million vs. last year's $10.5 million, Innis said.
Avantech's new Baxter site is across Hastings Road from Lindar Corp., which has annual thermoforming sales of about $25 million.
Thomas Haglin founded Lindar in 1993, is Lindar CEO and owner and acquired rotomolding tool builder Lakeland Mold Co. in Brainerd in 2012.
Lakeland was established in 1988 and adopted the Avantech identity in 2014 to reflect Haglin's expanded vision and plans for a global footprint.