CPI Plastics: Two additional leases for manufacturing, warehousing, assembly and distribution

CPI Plastics Group Limited announced it has completed negotiations and executed two additional leases for manufacturing, warehousing, assembly and distribution facilities in Mississauga, Ontario and Pleasant Prairie, Wisconsin. The new design build Mississauga plant which is located within close proximity of the Companies other five Mississauga manufacturing plants, will contain approximately 105,000 square feet of manufacturing space and 37,000 square feet of office space and will be used primarily to produce eon(TM) related products, including fencing, and spa cladding profiles. It will also accommodate CPI’s new corporate head office. When fully equipped it is estimated that this facility will be capable of housing approximately 40 extrusion lines with annual capacity in excess of $100 million.
The new design build Pleasant Prairie, Wisconsin manufacturing plant will be used to house the manufacturing business recently acquired from Mid America Bag. It will consist of approximately 100,000 sq. ft. and include manufacturing, assembly, warehousing and distribution (including 3,000 sq. ft. of office space) and a rail spur line. The new facility will be used to accommodate the current plastic bag extrusion business carried on in its leased North Chicago, Illinois plant and will contain ample space to meet anticipated increased demand. When fully equipped this facility will be capable of generating approximately $60 million in revenue. Total capital expenditures related to these two new facilities are expected to be in the range of $10 to $12 million. CPI will take occupancy of both plants during the latter part of 2003.

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