Film major Manuli Stretch Group has established a U.S. production base by acquiring Quintec Films Corp. of Shelbyville, Tenn. Manuli completed the acquisition Nov. 26 for undisclosed terms.
Manuli Stretch of Milan, Italy, expects the Quintec acquisition to help it realize ambitious sales targets in North America.
``The transaction with Quintec allows both businesses to capitalize on their strengths and quickly accelerate their growth plan in North America, where it is forecast, within 2010, to reach annual sales of 100 million pounds of industrial plastic films,'' said Manuli Stretch Chairman Sandro Manuli in a news release.
Quintec and Manuli are leaders in stretch film, with each holding two patents in multilayer stretch and pre-stretched films, respectively.
Manuli Stretch's product line comprises cast linear low density polyethylene pallet wrap, cast LLDPE silage and waste films, and cast polypropylene packaging films. It also distributes related films and supplies. Most of its film operation is five- and seven-layer production.
Quintec specializes in cast seven-layer LLDPE stretch film, claiming to be the first with such a construction. It also makes seven-layer film for form, fill and seal applications and other specialty films. Manuli Stretch said the Quintec plant will continue operating and its management will continue with the business.
Manuli Stretch opened its first U.S. sales office, Manuli Stretch U.S.A. Inc., in late 2006 in Chicago.
``This move will allow us to serve international companies and internally exchange research and development techniques and information globally,'' officials said in a news release issued by both companies.
The Quintec acquisition is part of a broader international push that Manuli Stretch expects will double global sales for the five years ending in 2010 to 500 million euros ($739.6 million). The United States and Russia will figure prominently in the growth, according to statements on the company's Web site. A key project is construction of an 88 million-pound-per-year film plant in Moscow. In the Americas, the company aims to expand through projects under way in Argentina, Brazil and elsewhere.
Established in 1970, Manuli Stretch had 2006 sales of 284 million euros ($420 million) and operating profit of 13 million euros ($19.2 million). It claims to be the world's largest stretch film manufacturer and boasted total annual film capacity of 550 million pounds per year at the end of 2006.
In addition to the Quintec acquisition, Manuli Stretch operates two plants in Italy and one each in Germany, the United Kingdom and Argentina.