Mattr Corp. (“Mattr”) (TSX: MATR) announced that it has completed the establishment of two new state-of-the-art Composite Technologies manufacturing sites.
In April 2023 the Company announced its intent to direct approximately $60 million of growth capital to establish an additional production facility for its Flexpipe® business, located in Rockwall, Texas and an additional production facility for its Xerxes® business, located in Blythewood, South Carolina. Each of these new sites were substantially completed during the first half of 2024, with both locations commencing production early in July, consistent with original budget and schedule.
These facilities will be initially populated with approximately 50% of the production equipment that their footprints are ultimately capable of accommodating and are expected to approach normalized levels of production in 2026. In combination, the Company continues to believe that these facilities, with initial equipment installations, have the potential to enable over $100M of incremental annual revenue generating capacity as they approach efficient utilization levels. The Company retains the option of adding further production equipment to each site in a phased manner in future years.
“I am pleased by our teams’ ability to execute these major growth capital programs on time and on budget, all while continuing to meet existing production commitments,” said Martin Perez, Group President of Mattr’s Composite Technologies segment. “These new facilities will enable us to keep up with the growing demand for our products and to serve our customers even more efficiently. The added scale and modernized footprint is expected to contribute to margin expansion for the Composite Technologies segment over time.”
In addition to these two new facilities, the Company’s total capital spend in 2023 and guidance for 2024 included a variety of incremental modernization, expansion and optimization initiatives. Within the Composites Technologies segment, among these investments is a dedicated, fully automated storm water chamber production line, co-located within the Rockwall, Texas facility; expansion of Xerxes production capacity within the Company’s existing Edmonton site; and modernization of the Company’s existing Xerxes production site in Seguin, Texas. Collectively these additional enhancements to the segment’s production footprint are expected to further improve total output, elevate efficiency and contribute to higher segment margins over time.
The Company continues to progress on the relocation, bifurcation and modernization of its Connection Technologies segment North American production footprint, with two new production sites in Fairfield, Ohio and Vaughan, Ontario still expected to be completed by mid-2025.
