Germany-headquartered rigid films producer Klöckner Pentaplast is investing US$51.8 million to expand its capacity at its facilities in Suzhou, China; Cotia, Brazil; and Santo Tirso, Portugal.

The firm will open its first Chinese production site in Suzhou to produce packaging films for the growing domestic market. The first phase of operations will focus on transverse direction oriented shrink-label films and a R&D centre. The US$29.5 million investment will increase Klöckner Pentaplast’s global shrink-films capacity by 6,000 tonnes.

In Brazil, the company will invest in 1,200 tonnes of additional coating and laminating capacity suitable for the production of PVdC-coated and laminated packaging films to service the Latin American pharmaceutical industry. In addition, PVC calendaring capacity will be increased by 12,000 tonnes to service the pharmaceutical, food, print, card, and general-purpose thermoforming markets. The US$15.1 million investment will add 36 employees and start-up will be undertaken progressively from 2013 to 2014.

The new capacity further complements the group’s existing film production capacity at two facilities in Latin America, Villa del Totoral, Argentina, and Cotia, Brazil.

Meanwhile, in Portugal, it will add to its European production capacity for polyester films. Primarily used for food and consumer packaging applications, the new 8,000 tonne-capacity addition is expected to start up by late next year.

Klöckner Pentaplast Group is wholly owned by the Strategic Value Partners Investor Group, has sales of over US$1.56 billion and employs more than 3,000 people worldwide.

(PRA)

Electronic Editions 2012