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CCL Industries and Taisei Kako setting up plastic tube plant in Thailand

March 26, 2013

TORONTO — Labels and containers major CCL Industries Inc. is partnering with a Japanese firm to set up a plastic tube plant in Bangkok, Thailand.

CCL of Toronto is teaming up with Taisei Kako Co. Ltd. of Osaka, Japan, to make tubes for consumer product packaging in Asia. The 50:50 venture represents equity of US$5 million to start the operation. Each partner will contribute machinery from its existing operations to get production rolling.

CCL stated in a news release that Taisei Kako is a leading Japanese producer of specialty plastic containers for the personal care and pharmaceutical market.

“We are very pleased to have found such an advanced technology company as Taisei Kako to help us build our tube business in Asia,” stated CCL President and CEO Geoffrey Martin in a March 25 news release. “The new operation will focus on selling tubes alongside labels to existing CCL customers in the home & personal care sector in South East Asia, while exporting products to customers of Taisei Kako in the same sector in Japan.”

Martin said the regional market is one of the most important emerging regions for such packaging.

Taisei Kako employs about 950 at nine plants mainly based in Asia. CCL said Taisei Kako has a fully automated, 24-hour manufacturing system with advanced digital inspection technology. It has been producing plastic packaging for healthcare and beauty care since 1932.

CCL employs about 6,600 in 74 plants around the world. CCL Tube and CCL Containers are large producers of extruded plastic tubes, bottles and aluminum aerosol cans

The company claims its CCL Label business is the world’s largest converter of pressure sensitive and film materials for labels for consumer packaging, healthcare, automotive and consumer durables.