In less than four months under new ownership, rigid-film major Kl"ckner Pentaplast Group said it is boosting global production capacity with $51.8 million worth of investments in Suzhou, China; Cotia, Brazil; and Santo Tirso, Portugal.
In Cotia, KP will add 2.64 million pounds per year of coating and laminating capacity for the Latin American pharmaceutical industry. That capacity complements production already at Cotia and at Villa del Totoral, Argentina, and will allow the firm to produce more Pentapharm Alfoil-brand polyvinylidene chloride-coated and Pentapharm Aclar-laminated pharmaceutical packaging films.
KP also will hike annual PVC calendering capacity at Cotia by 26.4 million pounds 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. Calendering will come on stream in spring 2014, followed by matte calendering capacity in the fall.
KP said it will add more production in Europe for polyester films used mainly for food and consumer packaging. At Santo Tirso, it will invest $7.2 to start up a new extrusion line in late 2013, adding 17.6 million pounds of capacity and 25 new jobs.
KP will open its first production site in China in spring 2013. The 115,000-square-foot Suzhou site initially will focus on transverse oriented shrink films for the country's growing need for packaging films. The $29.5 million project will boost KP's global shrink-films capacity by 13.2 million pounds. The operation includes a research and development lab and will employ about 76.
KP announced its expansion plans Nov. 6.
Greenwich, Conn., hedge fund Strategic Value Partners Investor Group bought Montabaur-based KP in July from Blackstone Group LP.