Mattr Invests in New Canadian and US Connection Technologies Facilities, Replacing Existing Site While Enhancing Production Capacity and Efficiency
29 June 2023 - 9:30PM
Shawcor Ltd., dba Mattr Infratech (“Mattr” or the “Company”) (TSX:
MATR) announced today that it will expand and enhance its
Connection Technologies (formerly Automotive and Industrial)
segment production capabilities in the US and Canada, with
commitments for two new operating facilities which, in combination,
will replace its existing Greater Toronto Area (“GTA”)
manufacturing site that was sold and leased-back in June of 2022.
Capital expenditures for these operating facilities are expected to
represent, in the aggregate, approximately $35 million across 2023
and 2024. The 2023 portion of these organic growth investments form
a part of the Company’s previously communicated capital expenditure
guidance of $160-$180 million for the current year. These
facilities will expand the Company’s capability to deliver
high-quality heat and cold shrink tubing and highly specified
custom wire and cable products to the North American market, more
specifically:
- Its Shawflex
business will be relocating to a larger, more efficient facility in
Vaughan, Ontario. This new site will also house Kanata Electronic
Services Ltd,, which was recently acquired and is being integrated
into the Shawflex business. The Shawflex business manufactures
highly specified custom wire and cable products and assemblies for
complex applications and extreme environments, and;
- Its DSG-Canusa
business will be relocating its North American manufacturing
footprint from the GTA to a larger, more efficient facility in
Fairfield, Ohio, moving closer to its primary vendors and the
majority of its customers. This new site will also house the
business’s North American distribution hub, which will relocate
from Loveland, Ohio. The DSG-Canusa business manufactures
high-quality heat & cold shrink tubing products and accessories
for automotive, communications, electrical utility, electronic and
energy markets.
“These substantial organic investments are an
important part of our overall strategy to elevate returns for the
entire organization,” said Frank Cistrone, President of Mattr’s
Connection Technologies segment. “Our Shawflex business has grown
dramatically over the last few years and a larger, more modern,
Ontario facility will allow us to meet continued demand expansion,
with greater efficiency, in the years to come. Strategically
relocating our DSG-Canusa production footprint to Ohio positions us
closer to our North American supplier and customer base,
simplifying and enhancing our operations. These new sites create a
pathway for both businesses to safely and efficiently expand
capacity to meet the long-term demand for our high-value products
across North American critical infrastructure and industrial end
markets.”
Equipment will be relocated from the Company’s
current GTA site to the new facilities in a phased manner, and both
facilities are expected to be operational in 2025. They are
expected to approach normalized initial levels of production during
2026. The Company believes that, in combination, these
facilities with initial equipment installations, have the potential
to enable over $50 million of incremental annual revenue generating
capacity as they approach efficient utilization levels.
About MattrMattr is a
growth-oriented, global materials technology company broadly
serving critical infrastructure markets, including transportation,
communication, water management, energy and
electrification. The Company operates through a network of
fixed and mobile manufacturing facilities. Its three business
segments, Composite Technologies, Connection Technologies and
Pipeline & Pipe Services enable responsible renewal and
enhancement of critical infrastructure while lowering risk and
environmental impact.
For further information, please contact
Meghan MacEachernDirector, External Communications & ESG
Telephone: 437.341.1848Email: meghan.maceachern@mattr.comWebsite:
www.mattr.com
Forward Looking Information
This news release contains forward-looking
information within the meaning of applicable securities laws. Words
such as "may", "will", "should", "anticipate", "plan", "expect",
"believe", "predict", "estimate" or similar terminology are used to
identify forward-looking information. This forward-looking
information is based on assumptions, estimates and analysis made in
the light of the Company's experience and its perception of trends,
current conditions and expected developments, as well as other
factors that are believed by the Company to be reasonable and
relevant in the circumstances. Forward-looking information involves
known and unknown risks, uncertainties and other factors which may
cause actual results, performance or achievements to be materially
different from those predicted, expressed or implied by the
forward-looking information. The forward-looking information is
provided as of the date of this news release and the Company does
not assume any obligation to update or revise the forward-looking
information to reflect new events or circumstances, except as
required by law.
Source: Shawcor Ltd., dba Mattr Infratech
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