TORONTO (Aug. 25, 1:40 p.m. ET) — CCL Industries Inc. plans to invest $30 million during 2011 and 2012 to expand its CCL Label division's operations in emerging markets.
In an Aug. 23 news release, the Toronto-based firm said it will build three new plants and invest in additional capacity at some of its existing facilities.
A new third plant in Bangkok will provide increased capacity and new technologies to support home & personal care (HPC) and beverage customers in Southeast Asia. CCL expects its Asian operations to approach 10 percent of global label sales in 2012, according to the release.
Construction has also commenced on a new pressure-sensitive label facility in Vinhedo, near São Paulo, to support HPC and healthcare customers in Brazil. The new site will more than double the size of existing operations, according to CCL. Additional converting capacity will also be added to a sleeve plant in Criciuma to support rapid growth in the food and beverage sector.
Finally, an existing joint venture between CCL and Emirati label and sleeve maker Pacman LLC will open a new plant in Jeddah, Saudi Arabia, this fall to serve customers in the Persian Gulf, according to the release.
CCL officials did not return requests for additional information.
President and CEO Geoffrey Martin said in the release that emerging market revenues now represent approximately 20 percent of CCL's total sales and that it expects growth to continue to accelerate at a premium to the developed world in the coming years.
CCL Industries employs 6,000 and operates 63 production facilities globally.
The company is split into business segments: CCL Label, CCL Container — which produces metal cans and plastic bottles — and CCL Tube, which extrudes plastic tubes for the consumer products industry in North America.
The company reported second-quarter profit of C$21.8 million (US$22.1 million) on sales of C$318.9 million (US$ 323.4 million), compared to profit of C$ 17.5 million (US$ million) on sales of C$302.2 (US$17.8 million) for the year-ago period.
