1st May 2014 13:18
LONDON (Alliance News) - RM2 International S.A. said Thursday it has agreed a lease for a 265,000 square foot production facility in Ontario, Canada.
The pallet development, manufacture, supply and management firm said the new facility will the group to concentrate its pultrusion activity and related expertise in a single location and has capacity for machinery capable of pultruding the parts for up to approximately 8 million BLOCKPal pallets per year; an increase of more than 100% from the anticipated capacity of the existing 135,000 square foot facility at the IPO.
RM2 said pallets will also be assembled at the new site, and in due course at additional locations, for delivery to RM2's customers. Operations are expected to begin at that location in June 2014.
A detailed review of the specialist pultrusion machinery being used in the manufacturing of the BLOCKPal pallets has identified that machines from certain suppliers are significantly more efficient when operating at high capacity, said the company. Therefore, concentration of production utilising these machines is expected to result in a material reduction in capital expenditure and pallet production costs.
Looking ahead, the group expects to have a total of 25 pultrusion machines installed and operating in the New Facility and 6 automated assembly lines by the end of the third quarter.
"I'm encouraged by the implementation of RM2's business plan since the IPO just a few months ago. The data from the machinery working at high capacity has been invaluable and this, together with the new, enlarged facility, will enable us to expand production significantly in the coming months in a single location and to benefit from other operational efficiencies," said CEO John Walsh.
Shares in RM2 were trading 2.29% lower at 64 pence per share Thursday afternoon.
By Alice Attwood; [email protected]; @AliceAtAlliance
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