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Treofan to double capacity at Mexico plant

July 5, 2006

Treofan Group, a manufacturer of specialty BOPP films based in Raunheim, Germany, says it intends to double the capacity of its plant in Zacapu, Mexico. The company plans to invest about US$45 million in expanding production and R&D facilities, including a new 8.2 meter high speed production line to be supplied by Brueckner.

“We are pleased that we are now refocused on growth,” says Peter A. Briggs, CEO of Treofan. “The additional capacity in our Zacapu plant in the Mexican state of Michoacan will support growth with key customers in strategic markets in the USA, Mexico and Canada.”

The new production line is designed to produce specialty multilayer coextruded BOPP films for flexible packaging and label applications in the NAFTA region.

“With this new investment, we are entering a period of expansion following the successful restructuring of our global business,” adds Briggs. “It will give us a stronger competitive position in North America and allow us to expand the company’s specialty product portfolio and better serve our North American and multinational customers.”

The current investment is fully financed by the company’s existing lenders and an investor group led by Goldman Sachs. Treofan markets its products in more than 20 countries, manufacturing some 220,000 tonnes (224,508 tons US) of film a year at seven sites in Europe, North America and South Africa. The company employs 1,600 people.

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