Verstraete IML opens first production site in US

The global IML specialist, a division Constantia Flexibles, is to start preparing the construction work for the new production site in the coming months. The site will begin production in the second half of 2017, and will have multiple printing press and finishing lines. Some 55 jobs will be created. Verstraete IML expects to invest 18 million EUR (20 million USD) in its new US plant within a period of three years.

Verstraete IML specializes in printing labels on polypropylene. Until now, the labels have been produced exclusively in Belgium, at plants in Maldegem and Ursel. Around 65 percent of the labels are produced for the European market, with 35 percent exported to Asia, the Middle East, Russia and the CIS countries, and North and South America. Following the creation of Verstraete IML USA, the two plants in Belgium will continue to operate at the same capacity levels.

Verstraete IML managing director Koen Verstraete said: ‘The decision to expand our production capacity with an international site is a huge step for our company. Going to North America will not only strengthen our position as global leader, but also gives us direct access to North America, the IML market with the best growth potential.’

Mike Henry, executive vice president of the Labels division of Constantia Flexibles, said: ‘The new site is located in Clarksville, Tennessee, where Constantia Flexibles already has a paper and pressure-sensitive labels plant serving the American beverage and food market. This has many benefits. Constantia has the management, legal and technical experience we need to operate successfully and rapidly in the North American region.’

The company’s Belgian production site is also preparing for the expansion in North America, and Verstraete added: ‘The plan for North America is ready to be executed. Our US team in Maldegem, Belgium has been working on a roadmap for Verstraete IML USA for more than a year. This plan will now be put into action.

‘The production unit in North America will be run in the same fashion as Verstraete IML in Belgium in terms of the production process and quality. Basically, representing 28 years of IML knowhow.

‘The new production site in North America will result in shorter turnaround times and a more efficient response to market demand both in North America as well as South America, Europe, Asia, the Middle East, and Russia the CIS countries.’