Its Canadian plant not figuring in its expansion plans, Nordenia International AG has decided to close the film conversion operation at the end of September.
Nordenia said June 20 that it will close the Nordenia Canada Inc. operation in Belleville, Ontario, and consolidate Nordenia's North American business at its Jackson, Mo., Nordenia USA Inc. facility. The announcement came about three weeks after Nordenia International of Greven, Germany, said it was committing 30.3 million euros (US$38 million) for expansion at several sites this year.
The Belleville plant employs about 80. It started in 1989 as a producer of hygiene-product bags. It added flexo printing capabilities in 1996-97. Belleville does not produce its own film, instead sourcing it from Nordenia's Missouri operation.
Nordenia said in a news release that many of Nordenia's customers have consolidated in the United States, limiting growth opportunities in Canada.
Nordenia announced May 30 that it will invest 4.5 million euros ($5.6 million) in the United States; 15.5 million euros ($19.4 million) in Gronau, Germany; 3.6 million euros ($4.5 million) in Hungary, Poland and Russia; and another 1.4 million euros ($1.7 million) in Halle and Osterburken, Germany. It said the investments will focus on products for the hygiene industry, but also will be directed at label films, surface-protection films and consumer packaging.
Nordenia USA makes film and bags using coextrusion, adhesive lamination and rotogravure printing. Officials there could not be reached for comment on consolidation and investment plans. Nordenia management in Germany declined to elaborate on the news releases.
``We are laying a solid foundation for our further growth,'' said Nordenia Chairman Ralph Landwehr in a news release.
The investment plan has the nod from Nordenia's new major stockholder, private equity firm Oaktree Capital Management LLC of Los Angeles.
Oaktree finalized its acquisition of a 90 percent stake in Nordenia in March. Managers, employees and longtime shareholders own the rest of the stock.
Nordenia's sales rose 18 percent last year to 462 million euros ($579.8 million).