Purchasing three multi-layer extruders to
support future growth
MONTRÉAL, April 21,
2022 /CNW Telbec/ - Imaflex Inc. ("Imaflex" or the
"Corporation") (TSXV: IFX) is pleased to announce that it has
signed equipment purchase agreements over the past quarter for
three new co-extrusion blown film lines ("extruders") to help meet
heightening demand for its products.
"In recent years Imaflex has seen consistent, profitable growth
in its Canadian and U.S. operations," commented Mr. Joe Abbandonato, President and Chief Executive
Officer of Imaflex. "During this time, we have been upgrading
all major extrusion lines in order to meet heightening market
demand for enhanced film quality, which permits our converting
customers' equipment to run at ever increasing speeds.
Simultaneously, and as forecasted, we successfully reached our goal
of selling out the capacity of our higher margin 5-layer
line. Demand has been so robust on the niche products we
created for this line that we recently purchased three new
co-extruders." They are expected to generate additional
extrusion capacity of between 12 to 15 million pounds per year,
depending on product mix. Once an extruder is installed and
fully operational, it should be fully utilized within 18
months. Barring any supply chain challenges, the extruders
are expected to arrive at varying intervals ending the second
quarter of 2023.
"In preparation for the significant volume increase these
investments will create, we recently strengthened our Canadian and
U.S. leadership teams by adding two new results-oriented operations
managers, who have deep flexible packaging industry experience,"
continued Mr. Abbandonato. Both individuals have a strong
track record of success in managing and mobilizing teams and
driving operational efficiencies, while optimizing production
processes within and between cross-functional units. "Having
these people in place will create and ensure our ability to
generate and grow our organic revenues more aggressively in the
coming years."
In connection with the equipment purchases, Imaflex has access
to financing of CDN $10.0 million
(the "loans"). The loans commence depending upon receipt of
each extruder and the principal is to be repaid in 60 equal monthly
installments. Currently, this financing would bear interest
at 4.89%, however the interest rate will fluctuate going forward
depending on the timing the loans will be disbursed.
About Imaflex Inc.
Founded in 1994, Imaflex is focused on the development and
manufacturing of innovative solutions for the flexible packaging
space. Concurrently, the Corporation develops and
manufactures films for the agriculture industry. The
Corporation's products consist primarily of polyethylene (plastic)
film and bags, including metalized plastic film, for the
industrial, agricultural and consumer markets. Headquartered
in Montreal, Quebec, Imaflex has
manufacturing facilities in Canada
and the United States. The Corporation's common stock is
listed on the TSX Venture Exchange under the ticker symbol
IFX. Additional information is available at
www.imaflex.com.
Cautionary Statement on Forward
Looking Information
Certain information included in this press release
constitutes "forward-looking" statements within the meaning of
Canadian securities laws. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by the management of the Corporation,
are inherently subject to significant business, economic and
competitive uncertainties, risks and contingencies. The
Corporation cautions the reader that such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual financial results, performance or
achievements of Imaflex to be materially different from the
Corporation's estimated future results, performance or achievements
expressed or implied by those forward-looking statements and that
the forward-looking statements are not guarantees of future
performance. These statements are also based on certain
factors and assumptions. For more details on these estimates,
risks, assumptions and factors, see the Corporation's most recent
Management Discussion and Analysis filed on SEDAR at www.sedar.com
and on the investor section of the Corporation's website at
www.imaflex.com. The Corporation disclaims any obligation to
update or revise any forward-looking statements, whether as a
result of new information, events or otherwise, except as expressly
required by law. Readers are cautioned not to put undue
reliance on these forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Imaflex Inc.