Ontario-based Trailmobile Canada Ltd. said it will fulfill orders placed with its bankrupt U.S. affiliate, Trailmobile Trailer LLC, bumping production at its Mississauga, Ont., plant by 20 percent.

Trailmobile Trailer closed its factories in recent weeks and filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code on Dec. 5.
"In the near-term, if there is a positive to come of this action with Trailmobile Trailer, it's that we have increased our backlog," said Bert Clay, vice-president of sales and marketing at Trailmobile Canada.
Currently, the company's Mississauga, Ontario, plant produces dry and heated vans with a capacity of 28 a day. In July, Trailmobile Canada reduced production by 25 percent due to weak demand for new trailers.
"On a go-forward basis, we see ourselves in a great position to service the needs for Trailmobile in North America through our facility in Canada," Clay said. "We plan to expand our product mix to include 96-inch wides, converter dollies, and some other things that historically we have not built in Mississauga."
Trailmobile Canada is Canada's largest producer of dry-freight vans, and the country's second largest trailer manufacturer. It is majority-owned by Trailmobile Corp., a privately held company which also owns Trailmobile Trailer and several related businesses.