CCL announces $30m expansion plan for emerging markets

CCL Industries plans to invest USD $30 million during 2011 and 2012 to expand its label operations in emerging markets. The company will build three new greenfield plants and also invest in additional capacity at some of its 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 percent of global label revenues in 2012. Construction has also begun on a new pressure sensitive label facility in Vinhedo, near Sao Paulo, to support HPC and healthcare customers in Brazil. The new site 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 growth in the food and beverage sector. Finally, the Pacman-CCL joint venture will open a new greenfield plant in Jeddah, Saudi Arabia, to expand the company's footprint in the Gulf States of the Middle East.

Geoffrey Martin, president and CEO of CCL Industries, said: ‘Emerging market revenues now represent approximately 20 percent of the company's total sales and we expect growth to continue to accelerate. It therefore makes both strategic and shareholder value sense to allocate a higher portion of capital to these [regions].’

Click here for more stories about CCL Industries on L&L.com.