An Ottawa-based cleantech company says a move to a larger U.S. manufacturing facility will help it meet growing demand for its technology that recycles wasted energy from boiler plant and steam operations.
Thermal Energy International (TSX-V:TMG) says the new 25,000-square-foot manufacturing and distribution centre in Cheswick, Pa., about 16 kilometres northeast of Pittsburgh, is more than twice as large as its previous facility in the nearby town of Export.
Thermal Energy acquired the smaller plant in 2018 when it bought Boilerroom Equipment, a Pennsylvania-based producer of heat-recovery systems. Thermal says it plans to continue manufacturing Boilerroom’s technology as well as its own patented systems at the new facility.
The company says the new warehouse and manufacturing plant will help it deliver products more efficiently to its customers in Canada, the U.S. and Europe.
“This signifies the next step of integration of BEI into Thermal Energy, and paves the way for increased fabrication volumes and more flexible stocking, as well as providing a U.S. base capable of quickly adapting to continued Thermal Energy growth, with expedited service and delivery to the U.S. market and beyond,” CEO William Crossland said in a statement.
Headquartered in Ottawa, Thermal Energy has engineering facilities in Bristol, England and sales offices in Canada, the U.S., the U.K., continental Europe and China in addition to its manufacturing and engineering operations in Pennsylvania.
In its most recent financial statements filed in January, the company reported revenues of $5 million for the three-month period ending Sept. 30, 2020, down from $7.8 million a year earlier as COVID-19 wreaked havoc with the global economy.
Still, Thermal Energy boosted its quarterly net profit to $580,000 from $385,000 a year earlier, noting it benefited from $212,000 in federal wage subsidies and cut its expenses by nearly $280,000 year-over-year in the wake of COVID-related restrictions that curtailed travel and other business development activities.
The firm has inked several significant deals in the past several months, including a $1.5-million agreement with a European health-care provider, an $840,000 order from a major food products company and a $770,000 contract with a Canadian hospital.
Thermal shares were unchanged at 23 cents in mid-afternoon trading Wednesday on the TSX Venture Exchange.