Bonset America Corp. plans to increase capacity by 30 percent at its North Carolina glycol-modified PET shrink film facility to keep up with domestic demand.
The Browns Summit, N.C., plant is adding equipment and reconfiguring operations within its current 270,000-square-foot location to facilitate the growth, Karl Yancey, director of sales with Bonset America, said.
"This is basically designed to increase the film quality and our production efficiencies," Yancey said, "and also give us some more capacity to handle the market and also do some product development work."
Use of shrink sleeve labeling continues to grow, and customers want their packaging products more quickly than ever, he said.
"The shrink sleeve market is growing at about 4 to 6 percent, especially in PETG shrink sleeves. The market now demands shorter lead times. The extra capacity gives us quicker reaction time from conception to sleeve production," Yancey said.
Bonset America did not reveal a cost estimate for the work, but did say the project is scheduled to be completed in early 2020.
"We definitely want to have our capacity in line so we can keep our lead times short. Our focus is high-quality products with a stable supply chain and shorter lead times," Yancey said.
The Bonset facility in North Carolina currently has about 150 workers, he said, and that number could increase slightly, maybe by five or six employees, with the new project. "Efficiency is the key for us."
Shrink sleeves are attractive to brand owners because they eliminate the need for multiple labels on a single container. The impact of full-color graphics on the entire container also is helping to drive increased use, he said.
Beverages, food and bundle packs are key markets. "I think across the board, sleeves are still growing," Yancey said.
Current capacity is 25,000 metric tons per year, so the 30 percent increase will add about 7,500 metric tons to the facility's output.
Bonset America is owned by C.I. Takiron Corp. of Osaka, Japan.
