PaperWorks Industries, Inc., Bala Cynwyd, Pa., announced plans to consolidate its Canadian folding carton production into its recently-acquired manufacturing facility in Kitchener, Ontario, Canada. The company expects to consolidate all production at Kitchener by May 2016, and close its Hamilton, Ontario, plant by July 2016.
“Because the Hamilton facility is only 75 kilometers away from the Kitchener manufacturing plant, it made sense from a production and asset utilization perspective to consolidate production under one roof. The Kitchener plant is more modern and has newer equipment, which translates into more efficient output,” says Kevin Kwilinski, president and CEO.
In August, PaperWorks announced a strategic investment of more than $9 million over the next year to expand the capabilities of the Kitchener facility. The plant was one of the manufacturing locations acquired from CanAmPac in July. Canada-based coated recycled board producer Strathcona Paper, also part of that acquisition, continues to be part of PaperWorks’ long-term strategy and is not affected by any consolidation initiatives.
The 340,000-square-foot Kitchener facility is known for its high-quality offset litho-printed folding carton design and production capabilities. The facility manufactures folding cartons for a variety of products, including dry and frozen foods and beverage, among others, and services brand owner supply needs in Canada and the northern part of the United States.
The Hamilton plant has been producing folding cartons for many decades and was part of the Rosmar Packaging Corp. acquisition PaperWorks made in 2011.