MONTABAUR, GERMANY (Nov. 6, 3:55 p.m. ET) — In less than four months under new ownership, rigid film major Kl"ckner Pentaplast Group said Nov. 6 that it will boost global production capacity in $51.8 million worth of investments in Suzhou, China, Cotia, Brazil and Santo Tirso, Portugal.
In Cotia it will install 2.64 million pounds per year of additional coating and laminating capacity for the Latin American pharmaceutical industry. The new capacity complements existing production at Villa Del Totoral, Argentina, and Cotia and allows for more production of Pentapharm alfoil PVdC-coated and Pentapharm Aclar-laminated packaging films for the Latin American pharmaceutical industry.
KP also will hike PVC calendaring capacity at Cotia by 26.4 million pounds per year for Latin America's pharmaceutical, food, print, card and thermoforming markets.
The Latin America investments will total $15.1 million and create 36 new jobs. The new coating and laminating capacity will start up in fall 2013 with calendering on stream in spring 2014 followed by matte calendering capacity in fall 2014.
KP said it will add more production in Europe for polyester films used mainly for food and consumer packaging. The Santo Tirso, Portugal, plant will start up a new extrusion line in winter of 2013. The $7.2 million program will add 17.6 million pounds per year of extra capacity and hike employment by 25.
KP will open its first production site in China in spring 2013. The SuzhouIndustrial Park site will initially focus on transverse oriented shrink films for the growing Chinese market for packaging films. The $29.5 million project will boost KP's global shrink-films capacity by 13.2 million pounds.
KP broke ground on the 115,000-square-foot Suzhou facility in January 2012. The operation includes a research and development laboratory and will employ about 76.
KP said Pentalabel shrink films offer a range of labeling options, including full-body or partial shrink sleeves, tamper-evident closures and pressure-sensitive labels.
KP, based in Montabaur, Germany, is owned by Strategic Value Partners Investor Group. The Greenwich, Conn., hedge fund bought KP in July. The previous owner was Blackstone Group LP.
“With our new shareholder's support and partnership, we remain focused on our key strengths and delivering the high quality and superior technical expertise for which we are known,” stated KP CEO Christian Holtmann, in the Nov. 6 news release.