The move, in response to surging demand for its high quality poly bags, coincides with its purchase of a five acre site at the city's Edgerley Drain Road in a joint £20m deal with confectionery manufacturer Barnack. The site will be developed to provide new premises for both firms as well as new business parks comprising 31 industrial units which will be leased by other companies.
"We have already received interest from businesses looking to lease premises in the city and we predict the entire site could create around 700 new jobs," enthuses partner Stephen Reynolds.
"Our new hi-tech plant, which we expect to be complete by October, will accommodate more bag-making machines, probably from our existing Indian supplier, Mamata, and provide substantially increased warehouse space to cater for increased customer demand."
Reynolds says growth in poly bag demand, particularly, has seen Reynopoly's turnover increase by some 10% year-on-year over the past 3-4 years, while it is also seeing increasing interest in the packaging items it distributes, including tapes, pallet wrap and food trays. A big supplier to the food industry, the company is also a major stretchfilm converter.
Reynolds adds: "Our target is to move all staff and machinery to the new plant by early 2006; I am also hoping to recruit an additional 5-6 staff to our current seven-strong team."
