A Petoskey-based plastics maker is preparing to ramp up production at another location this spring, having recently acquired a facility in Texas.
Last week, Petoskey Plastics announced plans for new operations in McKinney, Texas, a suburb of the Dallas-Fort Worth area. It will occupy a plot of land that was last used as storage and office space for the furniture company Aidan Gray Living Inc.
Including site acquisition, equipment installations and planned building expansion, the company’s expected investment in the facility is $ 30 million.
“This expansion is exciting for us,” said Paul Keiswetter, Chairman and CEO of Petoskey Plastics, in a press release. “We’re vastly improving our ability to serve existing customers and adding new opportunities to our growing sustainable product lines while working in a highly desirable, small-town-feel location.”
With the expansion into Texas, Petoskey Plastics is adding to its list of locations, which includes plants in Petoskey and Hartford City, Indiana and Morristown, Tennessee, as well as corporate headquarters in downtown Petoskey and a sales office in Birmingham, Michigan.
Petoskey Plastics was founded in 1969 and specializes in the recycling of plastics and the manufacture of plastic films, bags and resins. The company said it exceeded capacity as part of the COVID-19 pandemic. There is strong customer demand for blown film products such as garbage bags, construction films and car seat covers. Company President Jason Keiswetter said the company’s efforts to gather data from another manufacturing site were “more than a year ago, although it appears longer.”
“We just completed a 32,000-square-foot expansion at our Morristown, Tennessee facility,” he said in an email. “It took about two years to complete, and we outgrew this space quickly. Texas is just in time and it will give us a few years to maintain or improve our growth path. “
The newly acquired building from Petoskey Plastics in Texas currently covers 53,000 square feet. The company expects a combination of processing and extrusion lines on site to increase production by approximately 15 percent over the next 12 months to meet growing product demand. The product range at the new location will be “a selection of our current blown film products including drawstring garbage bags, collation films and other industrial applications,” said Jason Keiswetter.
The expansion of the building should be completed in August 2022 and include a further 40,000 to 60,000 square meters for conversion and storage space, nine silos and rail spurs.
“This facility gives us the opportunity to be closer to our raw material suppliers in the Gulf and helps us serve our customers on the west coast,” said Jason Keiswetter in a press release. “We will cut our delivery times for both raw materials and finished goods in half and be more competitive overall. This line will start production in April and will receive the most modern equipment available on the blown film market in the coming months. “
Petoskey Plastics plans to expand the plant in Texas to a total of around 130,000 square meters within five years.
As of last week, Petoskey Plastics has 564 employees across the company, 451 of which are full-time and 113 further part-time and temporary jobs. Initially, the company plans to hire 20 employees in seven occupational classifications to open the Texas site. After the building expansion, the company plans to create 55 new jobs.
“We are very excited to announce plans for our fourth manufacturing facility,” said Jason Keiswetter. “We have already received a lot of support from our customers, suppliers, new employees and the City of McKinney.”