Flexstar reinvents itself through technology

Richmond, British Columbia — Flexstar Packaging Inc.'s roots date back to the 1970s, but the company today looks very little like it did 40 years ago.

The flexible packaging extrusion and converting plant has had eight changes in ownership since the early days, when it made commodity products like T-shirt sacks and produce bags.

But under the current regime, which started in 2005, the factory has stability and a focus on growing markets that's reaping significant growth.

“We've followed a very significant capitalization program over the 11 years that we've been in business, and really have changed, dramatically changed, the product lines that we sell our customers today,” said President and CEO Marc Bray.

Today the company's focus is on custom printed, laminated, flexible roll-stock and specialty films for the consumer and industrial markets. Typical products are films and pouches used to package food.

Bray has been at the Richmond plant since 2003 — prior to Flexstar's founding — when he was assigned to turn around the operation by the previous owner, Sonoco Products Co. of Hartsville, S.C. But he ended up leading a group that purchased the company, with backing from Ronald Stern, an individual investor with a long-term strategy based in Vancouver, British Columbia.

They felt the company could thrive as a full-service flexible packaging company. Bray said customers in western North America were underserved in that niche, and were turning to suppliers in the Far East, or the eastern United States and Canada.

The change in focus meant investing in new technology and equipment. Flexstar started a graphic department in 2009. It also added a Combi laminator — Flexstar now has three — and both film extrusion and printing equipment from Windmöller & Hölscher.

The latest W&H line, a Miraflex S flexographic printing press, is the first of its kind in North America.

“Since 2005 we've probably invested $16 [million] or $17 million in the plant,” Bray said. Flexstar is in the process of adding 32,000 square feet of space, for warehousing and specialty converting applications. The first 16,000 square feet opened last year, and the rest will open in August.

The new building, which is across a parking lot from the existing plant, will house what the company is calling its innovation center, which will help customers become familiar with new types of packaging, including stand-up pouches.

“It's a place where customers can come and learn about structures and filling technologies. We can teach them about flexible packaging, and we'll help them launch new products,” Bray said.

The new building will free up space in the 66,000-square-foot main plant, which Bray expects will soon be filled with additional laminating, printing and extrusion equipment.

In addition to machinery, the company has made substantial changes to its service and quality operations. That meant hiring a team that includes Dale Ince, vice president-technology; Mike Aves, director of operations; and Darcy Asham, operations improvement manager.

An example of their work: Flexstar put in place a new information system that allows customers to track and quickly access information, like inventory and shipping schedules.

“This industry is not like it used to be, where you found 10-12 week lead times,” Bray said. “The supply chain work that we do, that's a big part of our success.”

Ince said Flexstar's strength is how it reacts to customers' needs. Another key is the workforce. While the company is only 11 years old, some employees have been at the plant for more than 30 years.

“Our customers see us as [providing] good quality service, quality print and expertise in technology,” Ince said. He also talked about the commitment to training at Flexstar, something that was confirmed by Klaus Kleemann, vice president of sales at W&H's U.S. unit in Lincoln, R.I.

Flexstar sent workers to W&H's training facilities in Germany, where maintenance crews and machine operators got both classroom and hands-on instruction. Later on, they did follow-up training, too.

“During this training the operators start with an empty press that needs to be set up completely, which gives them deep understanding of all systems,” Kleemann said. “From the beginning you start with a well-trained crew and thus maximize your productivity.”

Flexstar started with 32 employees. Now it has 122, including 50 on the plant floor. Today the company has annual sales of “over $35 million,” Bray said.

“We've doubled our revenue in the last five years, and I expect we can double again in the next five years — or less,” he said.

That could mean growing through acquisition, Bray said, but definitely expanding outside its base in western North America.

“We've had a lot of our customers ask us,” he said. “There are always plans. We'd plan to follow the same formula that has worked here.”