Alcan acquires Indian packaging plant
CHICAGO — Alcan Packaging's global pharmaceutical division has acquired a flexible packaging plant in Chakan, India, from Associated Capsules Pvt. Ltd.
Terms were not disclosed for the deal, which is expected to close in early 2009.
The acquisition expands Chicago-based Alcan Packaging's footprint and strengthens its presence in the Indian pharmaceuticals market, according to an Oct. 6 news release. India's pharmaceuticals market — ranked 14th in the world — is expected to triple in size over the next decade, the release said.
With annual sales of $3.6 million, the 8,500-square-foot Chakan plant employs about 100. The facility processes PET, high and low density polyethylene, PVC and cast polypropylene, Alcan spokeswoman Diane Pare said in an Oct. 7 e-mail.
Alcan Packaging, a subsidiary of Rio Tinto Alcan of Montreal, makes packaging for food, pharmaceutical, cosmetics and tobacco markets. The firm has 130 facilities and 30,000 employees in 31 countries. It reported $6.2 billion in 2007 sales.
Associated Capsules, based in Pune, India, is a large producer of empty hard-gelatin capsules for the pharmaceuticals market.
Funding to help Palm expand in Mich.
MORENCI, MICH. — Injection molder Palm Plastics Ltd. plans to expand its Morenci operation.
Palm will build a 70,000-square-foot plant on 10 acres of land it intends to buy. The firm now employs 252 in Morenci, where it is based, and expects to add 130 jobs when the expansion is completed.
The project's cost will be about $7.7 million, of which $5 million will be used to buy equipment, according to a news release from state Sen. Cameron Brown, R-Fawn River Township.
Most of the funding will come from the private sector, supplemented with $270,000 from the city and $200,000 from Lenawee County's Community Development Block Grant Revolving Fund. As well, Morenci will receive $2.9 million in CDB grants from Michigan Economic Development Corp. of Lansing to build infrastructure for the new facility.
``These funds will help a successful Michigan-based business strengthen its operations,'' Brown said in a news release.
Palm officials were unavailable to provide further details.
Ecodry production moves to larger site
EAST DUNDEE, ILL. — Frigel North America Inc., which makes the Ecodry line of cooling equipment, has moved from Lake Zurich, Ill., to a new 40,000-square-foot facility in East Dundee.
Frigel announced the move Oct. 3. A news release said the new building ``sets the stage for continued growth and preparations for manufacturing in the United States.''
President Steve Petrakis said remaining in the Chicago area gives Frigel good access to U.S. customers, in a central transportation hub. The move from Lake Zurich to East Dundee was completed Sept. 29.
Frigel North America is part of Frigel Firenze SpA of Scandicci, Italy. The company's Ecodry equipment replaces traditional cooling towers with a closed-loop water-cooling technology that recycles water used in plant cooling by pumping that water into heat exchangers and cooling it with ambient air.
Frigel has been pitching Ecodry as more environmentally friendly than traditional cooling towers.
Mexichem reports sales up, as stock falls
MEXICO CITY — PVC and specialty chemicals maker Mexichem SAB de CV expects a sales jump this year of 122 percent, to 30 billion pesos ($2.2 billion), despite the global economic slowdown.
However, the Mexico City-based company said some future investment plans could be put on hold.
Mexichem notified the Mexican Stock Exchange of its sales projection after seeing the value of its shares plunge 22 percent Oct. 6. Mexichem investment relations director Enrique Ortega said Oct. 10 that over the week the stock had lost about 40 percent of its value. Mexichem said that drop in the share value was due entirely to ``prevalent market conditions.''
``We are reviewing possibly postponing some of our future [acquisition] plans, but not those that have already been negotiated,'' Ortega said. The company embarked on a $1 billion acquisition and expansion spree across the Americas a year ago and so far has spent $410 million, Ortega said.