CCL Industries is to invest $30 million to expand its CCL Label operations in emerging markets during 2011 and 2012. Three new greenfield plants will be built and capacity increased at some of the company’s existing facilities.
A new third plant in Bangkok, Thailand will provide increased capacity and new technologies to support home and personal care (HPC) and beverage customers in South East Asia. CCL expects its Asian operations to approach 10% of global label revenues in 2012.
Construction has also begun on a new pressure-sensitive label facility near Sao Paulo, to support HPC and healthcare customers in Brazil. This will more than double the size of existing operations. Additional converting capacity will also be added to the Brazilian sleeve plant in Criciuma to support rapid growth in the food and beverage sector.
The third new greenfield plant will be opened this autumn I Jeddah, Saudi Arabia, by the Pacman-CCL joint venture, to expand the company's footprint in the Gulf States.
President and CEO of CCL Industries Geoffrey Martin states: "Emerging market revenues now represent approximately 20% of our total sales and we expect growth to continue to accelerate at a premium to the developed world in the coming years. It therefore makes both strategic and shareholder value sense to allocate a higher portion of capital to these geographies."
Canada-based CCL now employs some 6,000 people in 63 production facilities globally. CCL Label is the world's largest converter of pressure-sensitive and film materials.
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