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CCL announces $30 million expansion plan

August 30, 2011

The company will invest $30 million to expand its CCL Label division.

CCL Industries Inc. has announced plans to invest $30 million during 2011 and 2012 to expand its CCL Label division’s operations in emerging markets. The company will build three greenfield plants and invest in additional capacity at some existing facilities.

“Emerging market revenues now represent approximately 20 percent of the company’s total sales and we expect growth 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,” says Geoffrey Martin, CEO. “It therefore makes both strategic and shareholder value sense to allocate a higher portion of capital to these geographies. Despite this investment, we do not expect overall expenditures to exceed depreciation company-wide in either 2011 or 2012.”

The company plans to build a third plant in Bangkok, Thailand, expand its both its Vinhedo and Criciuma facilities in Brazil, and open a new plant in Saudi Arabia. In a statement, the company says that the Bangkok plant will provide increased capacity and new technologies to support home and personal care and beverage customers in Southeast Asia. CCL expects its Asian operations to approach 10 percent of global label revenues in 2012. Construction has already commenced on the new pressure sensitive label facility in Vinhedo. The new site will more than double the size of existing operations and support home and personal care and healthcare customers in Brazil. Additional converting capacity will be added to the Brazilian sleeve plant in Criciuma to support rapid growth in the food and beverage sector. The Jeddah, Saudi Arabia plant is a joint venture between Pacman and CCL. The plant will open this fall and aims to expand the company’s footprint in the Middle East.

With headquarters in Toronto, CCL employs approximately 6,000 people and currently operates 63 production facilities globally. CCL Label is a converter of pressure sensitive and film materials for customers in the consumer packaging, healthcare and consumer durable segments.
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