New orders from current customers are driving custom injection molder Reo Plastics Inc. to expand its sole plant, a 135,000-square-foot facility in Maple Grove, Minn.
"Construction activities are beginning this week and we hope to have the space ready for use by May 2022," Dan Dammen, Reo executive vice president and chief financial officer, said in an Oct. 4 email interview.
The company is investing about $5 million to add 39,000 square feet to the building.
"The expansion is much needed warehouse space that will help give us space to keep up with the growth we have experienced the last several years. The pandemic has made maintaining more raw materials even more important," he added.
Reo also has been beefing up its lineup of injection presses. Since December, it has added seven Toshiba/Shibaura all-electric machines with clamping forces of 110-720 tons. The company expects to receive six more around Jan. 1, bringing its total to 61.
Sales for the fiscal year ended April 30 reached $36.6 million and Dammen said he expects them to approach $44 million for 2022.
"The recent revenue growth is the result of a significant increase in orders from three of our major customers. As a result, we have added weekend operations, so we are now operating over half of our capacity 24/7," he said.
The company employs 171 full-time workers, supplemented with temporary contract staffing, and is always looking to hire good workers, he said: "In addition to press capacity, finding and hiring technical staff has been a major concern."
Reo supplies companies in a range of markets including computer and business equipment; electronics and telecommunications; recreation and sporting goods; filtration; and health care. Reo shares are traded over the counter.