MONTABAUR, GERMANY (Feb. 9, 4 p.m. ET) — German packaging film manufacturer Kl"ckner Pentaplast Group is building its first Chinese production plant, a 185 million yuan ($29.5 million) investment that will focus initially on transverse-direction oriented shrink label films.
The 130,000-square-foot facility, in Suzhou, Jiangsu Province, is scheduled to open in the first quarter of 2013 and produce films for the domestic Chinese market, including its Pentalabel brand shrink films, the Montabaur, Germany-based company said in a Feb. 7 statement.
The plant will employ 100 and add 6,000 metric tons to Kl"ckner's global capacity, the company said.
“We are excited to expand our presence in China with a broad film portfolio utilizing the most advanced production technology,” said CEO Christian Holtmann, in a statement. “This new site enables us to continue to support our customers' growing global demand for high-quality packaging films, especially in the dynamic Chinese market.”
The factory will be in the Suzhou Industrial Park, and will include a research and development lab, the company said.
Kl"ckner has $1.4 billion in annual sales, with 17 factories in 11 countries. It said it is the only company with shrink-label manufacturing in the Americas, Europe and Asia.