Scottish packaging company Macfarlane Group (Clansman) plc is investing as much as £4 million ($6.36 million) to concentrate its plastic molding division in one central plant.
In addition, Macfarlane has launched a new plastic films division. The unit, which has capacity to process 110 million pounds of film annually, comprises five extrusion and converting companies Macfarlane has acquired in the past three years.
The Glasgow, Scotland-based firm reported that its profit rose 7.2 percent to £10.4 million ($16.5 million) for the six months ended June 30, and sales increased 24 percent to £94.5 million ($150.3 million).
Macfarlane is transferring cap and closure molding operations from its ACW Ltd. subsidiary in Aberdeen, Scotland, south to the whisky bottle closure plant of Daniel Montgomery & Son Ltd. at Kirkintilloch, near Glasgow. ACW will close, according to the firm.
The Kirkintilloch plant will expand 50 percent to make room for the ACW operations, including 25 injection presses, according to Andrew Reekie, finance director.
The move should be completed by late September, he said.
``ACW is profitable but is a small company, very far from the market located 150 miles north of Glasgow. We decided to get all the technical expertise into Kirkintilloch where we already have design and assembly facilities,'' he said.
ACW has specialized in cosmetic and detergent packaging markets.
Macfarlane is investing in two of the five plastic film companies it has acquired.
The company is doubling space for polyethylene film conversion at Saranne Packaging Ltd. in Port Talbot, Wales, which makes bags and covers for the furniture industry.
Macfarlane also plans to purchase new printing machinery for Stroud, England-based Manton Plastics Ltd., a PE film extruder and printer.