Boehmer Box to Invest $9 Million, Hire 150 at Kitchener Facility

 

According to a report this past week by The Record, Kitchener, Ont., Canada, one of Kitchener's oldest manufacturers is getting a $9 million boost (CAD $11 million) that will increase its workforce and expand its markets.

PaperWorks Industries Inc., a Penn., USA, based company that now owns the 141-year-old Boehmer Box, announced this past Thursday that is making the multimillion-dollar investment to ramp up production at Boehmer's folding carton manufacturing plant on Trillium Drive.

Boehmer will hire about 150 employees across all areas of pre-press and production over the coming year, boosting the current workforce of 295 to well over 400.

 

The $11-million investment will expand the facility's sheet-fed lithographic printing presses and related carton-making equipment, and upgrade the manufacturing and warehouse space.he company said carton production capacity will increase by almost 75%. It's a dramatic turnaround for Boehmer, which as been in Kitchener since 1874, when it was founded by August and Charles Boehmer to make boxes for the button industry. The business has faced its share of challenges under different owners over the years.

At one point, back in 2005, when it was owned by Roman Corp., the company filed for bankruptcy protection as it was being pummelled by a strong Canadian dollar, excess capacity in the North American packaging industry, rising energy prices and debt.

The company was then sold to Atlas Holdings, a diversified industrial investment company based in Greenwich, Conn., which turned it around as part of its CanAmPac portfolio of companies. Boehmer was able to emerge from bankruptcy protection in 2006. PaperWorks acquired Boehmer in July when it bought the CanAmPac companies from Atlas.

Terry MacLeod, who has been at Boehmer for three years and is now president of PaperWorks Canada, credits the plant's employees for the turnaround. "The business and its employees have really embraced a lean manufacturing culture," he said. "That, combined with a variety of certifications to support the markets like food industries and coffee verticals, has helped Boehmer to really become a leader in the packaging industry."

MacLeod said PaperWorks was impressed with the plant and its culture, and that led to the decision to buy the company and invest in expanding production capacity in Kitchener. "They really felt the Boehmer culture would not only would fit well within their portfolio of companies but that they could utilize some of those talents and skills to assist with their other businesses, while also growing this business," he said.

Boehmer operates a 170,000-square-foot manufacturing plant on Trillium Drive and a 160,000-square-foot warehouse on nearby Battler Road. The multimillion-dollar investment will upgrade both facilities, but most of the investment is for modern equipment to boost production capacity. "It is automation with industry-leading capabilities, especially in terms of printing and finishing processes," MacLeod added.

The investment will help Boehmer expand both the number and variety of customers it can serve. It makes folding cartons for dry and frozen food, beverage, pharmaceutical, household goods, personal care and institutional food service products.

Right now, the vast majority of what Boehmer does involves boxes and packaging for the food industry. That includes the cereal, pie, coffee, and ice cream boxes that people see on grocery shelves. With the new equipment and production capacity, Boehmer hopes to be able to grow its share of the market in other areas, such as packaging for nutraceuticals, MacLeod said.

PaperWorks CEO Kevin Kwilinski said in a news release that the investment will build on Boehmer's design and production capabilities in making high-quality, offset litho-printed folding cartons. "We purchased Boehmer Box because of its demonstrated operational effectiveness, customer service and quality," Kwilinski said. "We now want to leverage that strong foundation to build a best in-class site. The goal is to deliver even better quality and service to our growing folding carton customer base," he added.

MacLeod also pointed out the lower Canadian dollar helps to make manufacturing here a bit more competitive, but it was the culture of the plant and the way the business runs that were primary factors in the decision by PaperWorks to invest in the plant here. MacLeod has worked in printing industries all his life. He said the culture at Boehmer was one of the reasons he decided to take the position here three years ago. "The minute I walked in, I knew this was a place I wanted to be a part of.

"They were very impressed with how clean and organized and well run the facility is. They loved the culture and the very strong open communication. The employees communicate not only with each other on the floor but with management as well," he concluded. "That culture is what is driving this decision."