Trade Envelopes is planning an expansion to Victoria, doubling its manufacturing capability, reducing its imported stock, and promising a wider range of innovative products.
The envelope manufacturer, which has plants in Queensland and NSW, will open the new 2500sqm Geelong facility in August, bringing the total floor space to 5000sqm and doubling capacity to two million envelopes a day.
Managing director Toby Pitt says the expansion will lead to a 30 per cent reduction in imported envelope volumes and be focused on widening the company’s product range and addressing industry trends.
“Whilst many of our competitors are increasing their imported volumes, we still see a future in manufacturing in Australia,” he says.
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Pitt flagged the introduction of new envelope ranges and premium products and services that will help direct marketers and their printers improve sales and efficiency.
“There is quite obviously a lowering of overall volumes but we are seeing an increase in direct mail and client willingness to pay a higher price for a higher-valued product,” he says.
“So people may be printing less but they are willing to spend more per unit to market to a more targeted audience.
“We need to move away from low value commodity products and add some value to the process of print and mail.”
Pitt says he has selected a site near Avalon Airport that will accommodate two Winkler + Dünnebier envelope machines imported from Europe and the US, and a standard sized digital printer he is still choosing. It will be operated by 12 initial new staff, growing to 36 within two years, making it Trade Envelope’s biggest facility by far.
He says he chose Geelong because of the well trained and experienced labour pool, close proximity to Melbourne, low rental costs, and its long background in manufacturing with abundant ancillary service providers in the region.
“There’s a great labour pool from companies like Qantas and Target just waiting for something to happen, and the area has many cost-effective high-industrial properties available,” he says.
Trade Envelopes began three years ago in Queensland as an envelope overprinting firm and expanded to Sydney and began manufacturing operations about six months later after the collapse of Australian Envelopes created opportunity in the market.
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