By Mark Ladan
HUNTSVILLE - Despite the slight downturn in the economy, a company in Muskoka is well into the expansion of its manufacturing plant. KWH Pipe Canada Ltd. in Huntsville began the more than 30,000-square-foot expansion of its facility late last fall at a cost of $8.1 million.
When complete, by early 2003, the factory will be 75,000 square-feet in size and able to produce 50 million pounds of pipe per year. Production capacity will increase from its previous capacity of 30 million pounds per year, Chris Stillwell, plant manager says.
"With the economy slow, it's an ideal time to expand the plant," Stillwell says.
"We had to shut down half the plant to undertake the addition to the building, and having fewer orders right now made that easier to take. Also, we believe the slowdown in the economy will be short-lived, and by the time the expansion is complete, the economy should have picked up again."
The expansion will also mean more jobs for the community. The Huntsville plant currently employs 60 people. Stillwell says the workforce will grow by about 25 per cent when the expansion is complete.
In addition to its plant here, KWH Pipe has manufacturing facilities in Saskatoon, Sask., and California, as well as in Europe and Asia.
The company is the largest manufacturer of polyethylene pipe and fittings in Canada and one of the leading makers of those products in the United States.
The varying sizes of pipes made in the Huntsville factory are used in the natural gas industry, mining, pulp and paper mills and municipal water and storm sewers.
In Canada, KWH Pipe has revenues of about $50 million per year.
Stillwell is confident the expansion at the Huntsville facility will pay off for KWH Pipe.
"The market for polyethylene pipe has expanded a great deal over the last 30 years, especially because the product is non-corrosive, flexible and performs well in all temperatures," Stillwell says.
