HOLSTEBRO, DENMARK (Nov. 14, 11 a.m. ET) – Danish thermoformer Faerch Plast A/S plans to open a new factory in Durham, England, next summer.
The Holstebro-based company described the move as part of its on-going strategy “to secure costs, improve efficiencies and minimize its environmental impact,” adding it would “help improve operating efficiencies, shorten lead times and further strengthen the overall service provided to its rapidly expanding United Kingdom customer base”.
Around 14,000 square meters of factory buildings have been bought, with production expected to commence in the summer of 2012. The group did not reveal how much the new plant would cost.
Lars Gade Hansen, Faerch's chief executive, said: “In the future, part of our sales in the UK market will be produced at the factory in Durham. The products in question are primarily trays used for ready meals and fresh meat.”
Hansen said Faerch had also acquired a plot adjacent to the new factory, meaning the group now had 30,000 square meters of industrial site at its disposal in Durham.
“This will allow for the possibility of further expansion as demand increases,” he said.
“This significant investment is part of our long term strategy of being close to customers, which means that they, among other things, can achieve a high level of supply security.”
Joe Iannidinardo, Faerch Plast UK's managing director, said the group's good working relationship with its UK partners and local authorities had proved to be a significant advantage during the planning phase.
“We have concluded a very good agreement, and we are looking forward to starting up the new plant in Durham. It will bring Faerch even closer to its UK customers,” he added.