TORONTO, June 29, 2023 (GLOBE NEWSWIRE) — 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 Mattr
Mattr 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 MacEachern
Director, External Communications & ESG
Telephone: 437.341.1848
Email: meghan.maceachern@mattr.com
Website: 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
