E-commerce growth wave drives expansion of Jenison thermal packaging manufacturer

2021-11-16 21:26:17 By : Ms. yanfeng chen

JENISON — Cellulose Material Solutions LLC is active in two booming market segments and is investing in expanding its business and increasing production capacity.

The Jenison-based manufacturer of environmentally friendly thermal insulation, acoustic panels and thermal packaging solutions has begun investing US$9 million to add 54,000 square feet of storage and manufacturing space to its factory at 2472 Port Sheldon St. CMS will also install a second production line, which is expected to triple product output and add 12,000 square feet of new office space when it goes live in the first quarter of 2022.

CMS vice president Matt Henderson (Matt Henderson) said that the company's environmentally friendly thermal packaging solutions almost single-handedly promoted expansion demand. As the demand for environmentally friendly packaging has grown over the past decade, the COVID-19 pandemic has caused a surge in e-commerce.

"Before COVID, what was driving demand was that our customers needed to recycle packaging that could be recycled back into the waste stream to reduce the waste they put on the market. We are replacing traditional products such as expanded polystyrene (EPS) coolers, "Henderson said. 

He added: "Once the new crown pneumonia epidemic occurs, due to food shortages and other issues, as well as people with previous diseases or the elderly, we must provide consumers with more products." "This helps us. In metropolitan areas, We see a strong push to provide meal packs and groceries to high-risk and people who cannot go out."

The company's thermal packaging solutions are mainly used for food transportation and meal packages. In fact, at the height of the pandemic, CMS worked with Farm Box, which worked with New York State to provide food to high-risk groups who were unable to go out.

CMS produces two different types of thermal packaging solutions, including InfinityCore thermal lining, which is composed of 85% recycled polyethylene terephthalate (PET) or recycled polyester. The company also recently obtained a patent for this product. 

At the same time, InfinityCell thermal lining is made of 95% recycled paper, which can be repulped and reused.

In addition to the recyclability of the packaging, Henderson said that another benefit of the company’s packaging solutions is that they are flat, which helps companies reduce the warehouse space required, while making it easier to ship more packaging at once, especially with bulky ones. The packaging is compared to an ESP cooler. Green evolution

Dan Schoonmaker, Executive Director of Sustainability Business in West Michigan, said that although many companies are shipping unprecedented quantities of products due to the rise of e-commerce during the pandemic, many local companies have focused on creating more sustainable solutions in the past decade. forum.

"I think what you see here is that consumer products are being managed by removing packaging from pallet materials in a well-documented and universally visible way. Amazon boxes are now equivalent," Schoonmaker said. "So you will see a lot of investment in improving the sustainability of this activity."

Many companies that are actively involved in direct-to-consumer transportation see solving the packaging dilemma as an important part of maintaining a green business.

"What we see is a fairly common investment, from the smallest brands to the largest brands, improving their sustainable results and stories," Schoonmaker said. "Disposable packaging has become one of the main threats. When we think about this, we mainly think of takeaway containers and water bottles, but the fastest growing part of this is e-commerce." Remove obstacles

As the manufacturing industry faced severe labor shortages and supply chain fluctuations, CMS began to expand. Although not entirely unharmed, the company is planning a path through the disruption.

Henderson said that in its supply chain, CMS purchases most of the recycled polyester fiber for InfinityCore, and a small amount comes from overseas.

Expansion will create 40 jobs in a tight labor market, but Henderson said that the new production line will use automation to limit the need for manpower. The production line will automatically perform operations such as cutting and stacking large pieces of hot packaging materials.

"Of these 40 (new jobs), we have hired 10. We are working hard to pre-employ and train our leadership and technical positions," Henderson said. "Although there is a shortage, and we feel the shortage like many manufacturers, but because of the company culture, we feel that we have done a good job in recruiting new employees and retaining them."

Henderson said that CMS is considering expanding its business to other parts of the country, including locations closer to the city's core.

CMS worked with the Michigan Economic Development Corporation (MEDC), economic developer Lakeshore Advantage Corp., and Georgetown Township to ensure a combination of tax cuts and labor training funds to support the retention of the project in Western Michigan.

Amanda Murray, vice president of business solutions at Lakeshore Advantage, said: "In the case of CMS, they do have a strong reason to be closer to the core of the city where they buy more such meal packages, and closer to their customers." "Know us The tools to support this type of company are very important. We know that if the company cannot expand locally, they will move the investment elsewhere and take away the work." 

Murray also pointed out that although fewer companies are cooperating with Lakeshore Advantage to develop expansion projects in Allegan County and Ottawa County, the number of companies developing cold storage and storage space has increased. She said that the number of food processing projects in the Lakeshore Advantage service area is also increasing. 

"I do think this is the impact of COVID," Murray said. "CMS, they are indeed in the food processing supply chain. People order food packages at home. How do you get that food package? You need that kind of hot packaging."

This article is available to paid digital subscribers. Click here to log in or gain access.

Business news from our partners