Acrylon Plastics acquires Saskatoon rotomolding plant
Winnipeg, Man.-based Acrylon Plastics Inc. has acquired the assets of a rotational molding (or rotomolding) plant i...
Winnipeg, Man.-based Acrylon Plastics Inc. has acquired the assets of a rotational molding (or rotomolding) plant in Saskatoon, Sask. The purchase included two rotomolding machines from Norwesco Canada Ltd., a subsidiary of Norwesco Inc.
The Saskatoon plant operates out of a 12,600 square foot leased facility, and currently employs nine people. The facility has previously molded parts for one of Acrylon’s local customers.
Acrylon already owns two thermoforming and rotomolding plants in Winnipeg and Winkler, Man. The Saskatoon plant is the company’s first move outside of Manitoba.
“This greatly expands our opportunities to supply high quality custom manufactured products into Saskatchewan and Alberta markets,” noted Acrylon CEO and president Craig McIntosh. “We have found a large number of opportunities for custom rotomolded and thermoformed products in these markets.”
McIntosh says demand for custom rotomolding services has increased because of changing client expectations. In the past, clients of rotomolders were willing to deal with a number of suppliers. The range of qualities generated by a mix of suppliers is becoming less acceptable from the customer’s perspective, and many clients are looking to reduce the number of suppliers they source their products to.
McIntosh has also found that rotomolding is often used to replace metal processes such as the sheet metal and fabricated steel markets.
The company has already found one customer in Saskatoon, and gained about four others as part of the acquisition. The Saskatoon location also enables Acrylon to tap into the Calgary, Edmonton and Regina markets.
“Typically with rotational molding distance becomes a barrier for the product, transportation costs become more significant in terms of being able to supply [the demand],” said McIntosh, noting that the transport of hollow parts over long distances can be cost prohibitive.
The Saskatoon facility will be converted into a 24-hour production operation in upcoming weeks. Arcylon has entered into a processing agreement with Norwesco where the company will continue to manufacture its products in Saskatoon. Additionally, Norwesco will continue to have employees and an office in the newly acquired facility.
McIntosh has also expressed an interest in acquiring other manufacturing plants, particularly in Midwestern states like Minnesota, Iowa, and North and South Dakota.
“Its convenient to get there from Winnipeg,” said McIntosh. “There are companies down there that we are looking at that may fit the criteria we are looking for.”