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Resin Systems Inc. Upgrades Production Facilities – Plans U.S. Expansion

  • Wednesday, 1st November 2000
  • Reading time: about 2 minutes

Chemical technology company, Resin Systems Inc. announced that it has begun taking delivery of new resin- blending equipment at its Edmonton facility. Management expects the plant will be fully upgraded and operational by the end of November. The facility will have capacity to annually produce up to U.S. $15 million of resins for the composite materials industry. In addition, the Company also expects to order additional equipment in the near future to establish a U.S. based blending facility. RSI has targeted March of 2001 to have the U.S. plant fully operational. It will have capacity to annually produce up to U.S. $50 million of resins. Capital expenditures, solely for equipment, will approximate $800,000. RSI’s business plan calls for the construction of up to five blending facilities in the United States over the next four years. In a second development, RSI will receive a full-scale pultrusion machine within the next week. The move was undertaken to expedite production trials and product testing with potential customers now and into the future. RSI believes market penetration will be greatly accelerated, as the Company will have the ability to produce sample products on-site. Currently, RSI is conducting its production trials at a number of manufacturing facilities throughout the United States and Canada. In-house capability will provide time and cost savings. Prospective customers will be able to ship their production dies directly to RSI so that the Company can return the die, with finished parts for the customer’s evaluation. This will eliminate the need for the customer to halt production in their own facilities in order to carry out production trials with RSI’s “Version” resin. In order to further accommodate the marketing program, RSI will be expanding its sales marketing team. Management is currently interviewing two additional Technical Service Representatives. They will be responsible for conducting demonstrations and production trials. Current production-trials are proceeding according to schedule. Two have been successfully completed with several more scheduled in Canada and the United States over the next two weeks. Previous testing results and positive responses from the facilities at which production trials have been held, had a direct bearing on the Company’s decision to not only upgrade its resin blending facility in Edmonton but also expand into the United States.

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