The move expands Tonertype’s square footage from 13,500 to nearly 30,000, and it is now set up to manufacture 15,000 compatible toner cartridges per month.
The company says the decision to expand production centred on a change in the economic environment in the compatible cartridge market, and the continued revenue growth of ATS. The company announced a 23 percent increase in revenues for the first six months of 2010, to $16.9 million.
Chuck Mache, CEO of American TonerServ, said: “When we acquired Tonertype in 2007, the economics in the industry favoured outsourcing to remanufacturers versus building cartridges in-house.
“With the prices of cores rising so dramatically in 2010, causing wholesale cartridge prices to rise and putting margin pressures on the company, we’ve opted to expand our expertise of manufacturing compatible toner cartridges.”
He continued: “Our quality from Tonertype has always rivaled that of the OEM’s and compatible manufacturers, and while we will continue to make significant additional purchases from our selected strategic vendors, our expanded facility and increased manufacturing is designed to increase our margins on certain select skus. This is all made possible by our continued revenue growth.”