Growth expected in these markets which already represent 20% of company sales
CCL Industries has announced a $30m expansion plan for its emerging market label operations during 2011 and 2012. The company is to build three new Greenfield plants and invest additional capacity at some of its existing facilities.
Areas of investment include a new third plant in Bangkok, Thailand to increase capacity and new technologies to support home and personal care (HPC) and beverage customers in southeast Asia. Meanwhile construction has begun on a new pressure sensitive label facility in Vinhedo near Sao Paulo to support HPC and health care customers in Brazil. And in Jeddah in Saudi Arabia, the Pacman-CCL joint venture will open a new Greenfield plant to expand and company’s footprint in the Gulf States of the Middle East.
“Emerging market revenues now represent approximately 20% of the company’s total sales and we expect growth to continue to accelerate at a premium to the developed world in the coming years as our customers invest to drive improvement in consumers’ lives in these regions. It therefore makes both strategic and shareholder value sense to allocate a higher portion of capital to these geographies,” said Geoffrey Martin, president and ceo of CCL Industries Inc. “Despite this investment we do not expect overall expenditures to exceed depreciation company-wide in either 2011 or 2012.”