NEXE Innovations Inc has completed the acquisition of a 54,000 square-foot industrial facility strategically located in Windsor, Ontario.
With the acquisition of the new facility, the company said it will be able to significantly expand its production capacity of its proprietary NEXE compostable packaging that not only includes coffee capsules but other form factors.
In addition, NEXE said it has gained access to a workforce in Windsor that is highly skilled with deep experience with injection molding and other manufacturing skills required to support the company's commercialization and growth plans.
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"Acquiring a facility in Windsor enables NEXE to more easily access the talent needed to drive the company's production and product innovation initiatives," said Ash Guglani, president of NEXE, in a statement.
"Windsor is known for its expertise in manufacturing, automation, and Injection Molding. The Windsor region has more than 90 automobile and automobile parts manufacturers, including two OEMs – Fiat Chrysler Automobiles and Ford Motor Company (NYSE:F) of Canada, plus over 250 machine, tool, die and mold manufacturers, and more than 450 automation-related firms."
Guglani noted that Windsor-Essex is also home to more than 1,000 manufacturers, responsible for $4.5 billion in annual GDP making up 30% of the region's total GDP.
"Windsor-Essex is home to the busiest commercial border crossing accounting for more than one-third of all Canada-U.S. trade,” Guglani said.
“Having this facility in Windsor enables us to acquire the talent that we need for continued innovation, increases production capabilities and shortens our access to Europe and the US Eastern seaboard. We believe this initiative will enable NEXE to become a worldwide leader in sustainable consumer packaged goods alternatives to plastic."
NEXE acquired the new facility for $4.35 million, a significant discount to its original listing price of $6.5 million in April 2021.
With the completion of the acquisition of the new facility, the company said it intends to evaluate potential sale-leaseback opportunities to further monetize the facility once certain required repairs and improvements are completed.
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