Eagan Cabinetry Company To Expand Canadian Manufacturing Plant
Norcraft Companies, Inc., an Eagan-based cabinet maker, is investing $7.1 million to expand a Winnipeg, Canada, manufacturing facility that it says will more than double its capacity in the country.
Norcraft announced Friday it will add 78,000 square feet to its existing 56,700 square-foot building, a project it expects to complete by mid-2015. The planned expansion will increase manufacturing operations while reducing offsite warehousing. It also will allow the company to bring back shipping activities that have been off-site.
“The new capacity will further enable us to increase our sales and profitability in Canada as we more than double our manufacturing capacity, enhance our logistical and operational efficiencies, and position ourselves to better serve our customers,” Norcraft CEO and Chairman Mark Buller said in a statement.
The company said the plans are in response to growing demand for its Urban Effects product line in Canada and the U.S. Urban Effects is one of Norcraft’s seven main brands through which it markets its cabinets.
Last month, Norcraft announced an 8.1 percent increase in net sales to $97.6 million—up $7.3 million—for its second quarter ending June 30. Net income climbed to $4.8 million, or $0.23 per share, up nearly 167 percent from $1.8 million a year ago. The company said sales increased in nearly all of its divisions, citing mix/price gains and promotional activity.
Norcraft’s stock price held steady Friday after opening at $15.51 a share. Overall, its share price is down 20 percent since opening the year at $19.51 a share. This is its first full year as a publicly traded company as it filed its initial public offering in October 2013.