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MILTON KEYNES, ENGLAND — Following its strategy of growing in liquid food packaging across Europe, Plysu plc's dairy and juice division has established a bottle manufacturing company in Spain.

The new firm, Plysu Envases Alimentarios SL, will operate an existing blow molding operation acquired by Plysu in a £2 million ($3.24 million) deal with an undisclosed national liquid food packaging company.

The subsidiary is headed by Fernando Ib†rcena.

The plant, which has sales of £2 million (US$3.24 million), already has five blow molding machines, chiefly Aokis, producing bottles as large as 5 liters, according to Stephen Nobbs, Plysu finance director.

Part of Plysu's investment has been earmarked for a substantial expansion of the plant, he said. The first phase, involving the addition of several more Aoki PET blow molding machines, will be operational this summer.

Milton Keynes-based Plysu said it will expand in the region via through-the-wall bottle supply to nearby major customers.

Last year Plysu opened a polyethylene bottle blow molding plant at the milk bottling operation of one of its leading dairy customers, Dairy Crest Ltd.

Plysu has committed to installing blow molding lines alongside its clients' filling operations.

Plysu already has plants in Belgium, France, the Netherlands and Britain.