SAO PAULO, BRAZIL - Leading Brazilian plastics flexible packaging producer Industria de Papeis de Arte Jose, commonly known as Toga, is launching a $10 million extrusion and diaper bag plant with U.S. and German partners. BMT SA, with one 32,300-square-foot plant at Barueri near SÃo Paulo, will begin to supply printed low density polyethylene bags for Procter & Gamble Co. diapers for the local market in June.
Toga is joined in equal shares in the venture by U.S. polypropylene laminate converter and printer Bryce Corp. Inc. of Memphis, Tenn., and German PE film and diaper bag producer Mildenberger & WillingGmbH of Groenau.
Toga has had dealings with Bryce for five years in the United States, where the two run the joint venture Bryce Toga, making laminated PP film.
The three-way BMT deal followed P&G's decision to produce diapers in Brazil and its request that Toga make the packaging. Toga brought in M&W because of its technology and expertise in making the specialized products.
``We began extruding and printing diaper bags at an existing Toga plant,'' said Jorge Maisch, BMT general manager.
Later, the parties agreed to establish a separate plant for the new product and Toga brought in its existing U.S. partner.
The new plant will be equipped with one 4.3 million-pound-per-year Windmoeller & Hoelscher extruder, and an eight-color, 13-foot flexo printing press, along with the existing bag-making line that BMT trans-ferred to Barueri from the Toga plant.
The Brazilian joint venture will produce the bags formerly imported for P&G from Argentina, Maisch said.
Toga, which is also a top Brazilian paper and cartonboard converter, reported 1994 sales of more than $120 million.
Separately, Toga confirmed it is negotiating to merge with Dixie Lalekla SA, a large, SÃo Paulo-based thermoformer and injection molder of disposable cutlery and food-service products. Dixie also converts and prints paper pack-aging and makes institutional metal and plastics products.