Thermoplastics manufacturer Omni Industries Limited is looking to significantly expand the company’s production capabilities following its $40-million investment in a new injection moulding machine.

The strategic investment, which the company’s directors believe will be instrumental in helping the business to double current production capacity for some it’s most sought-after products such as brewery crates, will also pave the way for its addition of new industrial containers to the production line.

“Our new injection moulding machine (M-Series 650) supplied by Milacron India Limited will replace the older models we used, consuming three times the power for the same output,” plant manager at Omni Chockalingam Ramasamy said as he spoke of the machine’s efficiency.

With a lifespan of approximately 15 years, the advanced system, which utilises a specialised servo and transducer-controlled injection moulding process, the plant manager said, will also reduce energy consumption as it adjusts the motor speed and torque based on the machine’s demand at each phase of the process.

“It is also more sustainable than older models, reducing material and water waste and improving overall resource efficiency,” he added.

Milacron, recognised as one of the largest manufacturers of injection moulding machines globally, is said to be a leader in the industry offering all-electric, servo-hydraulic or low pressure injection systems compact with a full range of plastics-processing technologies. The machines capable of producing everything from precise medical components to large structural plastic products ranges from 17 to 7,650-ton clamp capacities designed to optimise manufacturing processes while decreasing downtime and increasing productivity.

Priding itself as the only thermoplastic manufacturer currently utilising the state-of-art technology, Omni, in looking to further grow its customer base, said the addition of the new machine will help it to offer more competitive pricing locally as it opens up new markets and attract more clients from overseas.

The company’s technical staff, now said to be fully equipped to utilise the new system, following an intense period of training carried out by the Milacron team, is also being readied to engage additional systems, some of which are expected to be onboarded as early as next year.

“By the end of this year and into the first quarter of next year, Omni plans to acquire additional equipment like a Schuller label printer and a bottle crate mould, allowing further expansion into the paint packaging industry. Backed by the Government’s accelerated water projects, we are also looking to increase our income from the manufacture of pipes,” the company’s directors noted.

Among some of the new products said to be in the pipeline for roll-out are crates for agricultural use, including those for bananas and other vegetables; large family-sized laundry baskets with covers; small milk and juice crates for use by juice manufacturers in production and cold storage as well as their previously announced bread trays designed for both the manufacturing process and transportation to customers.

As part of its core business, Omni develops and distributes PVC and hardware products as well as household and industrial packaging.

Following its listing on the Junior Market of the Jamaica Stock Exchange earlier this year, the company continues to be bullish in its efforts to retool operations as it steps up efficiency to further grow the 50 year old establishment.

With almost half of the $500 million proceeds raised from the initial public offering (IPO) in May said to have been earmarked for those retooling and expansion efforts, Managing Director Patrick Kumst said the overall growth plans are so far progressing smoothly.

“As outlined in the prospectus, Omni is currently focused on retooling and introducing new products to enhance efficiency as we expand our product line. The plan includes decommissioning existing machines and replacing them with new, more efficient machines. These upgrades, which are moving apace, are expected to generate cost savings of $6 million annually due to reduced energy consumption, less downtime, and fewer spare parts required,” he said.

Up to the end of the second quarter period ended June 30, 2024, half-year revenue for the company stood at $1.1 billion, reflecting a flat performance when compared year-on-year. This as net profit marginally grew to $107.9 million — $2 million more than of the comparable 2023 period accompanied by total assets of $1.77 billion.

Total revenues for Omni at the end of its 2023 financial year totalled $2.04 billion.

Plant Manager Chockalingam Ramasamy demonstrates how the machine’s advanced control systems work.

Members of Omni’s maintenance, production and tool shop teams were trained by representatives of Milacron to install and operate the new machine.