Graham Packaging Latin America LLC, a subsidiary of Graham Packaging Co. LP, formed a new company with Industrias Innopack SA de CV on Dec. 13. The new company will be called Graham Innopack de Mexico. Although terms of the agreement were not disclosed, Graham has the controlling interest.
"Mexico is an important market for Graham," Philip Yates, president and chief executive officer of Graham Packaging Co., said in a news release.
"As both global and major Mexican companies expand their operations, we want to be able to serve their needs."
The new company will focus on custom blow molded plastic containers made from PET, high density polyethylene and polypropylene. The company will serve the food, beverage, personal-care, household-cleaner and automotive-lubricants markets.
"Innopack brings its knowledge of the Mexican market, its plant infrastructure and its customer relationships in Mexico," Graham Packaging spokesman Don Sarvey said in a telephone interview. "Graham brings its technology and global customer relationships."
Innopack supplies products to key customers such as Grupo Continental Corp., Coca-Cola Co. and Bestfoods.
Innopack and its affiliates operate facilities in seven countries. It manufactures plastic bottles, PET preforms and closures for the food and beverage industries. Graham Innopack de Mexico may use the preform and closures production of Innopack, Sarvey said.
This marks Graham's entry into the Mexican marketplace. In April 1997, Graham Packaging Latin America acquired the assets of Rheem Graham in Brazil. In July 1999, the firm acquired Lidoplast and Amerpack, bottle and tube manufacturers in Argentina.
Graham now has a presence in 12 countries — Argentina, Brazil, Canada, France, Germany, Hungary, Italy, Mexico, Poland, Turkey, the United Kingdom and the United States.
Graham Packaging Co. LP is based in York, Pa. The company's U.S. food and beverage unit claims to be the No. 1 supplier of plastic containers to the juice industry. The company placed No. 6 in Plastics News' 1999 North American blow molders ranking, with related 1998 sales of $465.3 million.