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CCL partners for Thai tube plant

April 2, 2013

The 50-50 venture with Taisei Kako of Japan includes an investment of $5 million to start the operation.

CCL Industries Inc., the world's largest converter of pressure sensitive and film materials for labels for consumer packaging, is partnering with a Japanese firm to set up a plastic tube plant in Bangkok, Thailand.

CCL, headquartered in Toronto, Canada, is teaming up with Taisei Kako Co. Ltd. of Osaka, Japan, to make tubes for consumer product packaging in Asia. The 50-50 venture includes an investment of $5 million to start the operation. Each partner will contribute machinery from its existing operations to get production rolling. Taisei Kako is a leading Japanese producer of specialty plastic containers for the personal care and pharmaceutical market.

CCL's interest in the joint venture will be represented by Jim Anzai, vice president and managing director of its Asian operations.

Geoffrey Martin, president and CEO of CCL Industries, says, "We are very pleased to have found such an advanced technology company as Taisei Kako to help us build our Tube business in Asia. The new operation will focus on selling tubes alongside labels to existing CCL customers in the Home & Personal Care sector in South East Asia, while exporting products to customers of Taisei Kako in the same sector in Japan. We believe this is an excellent opportunity for CCL to expand our successful Tube business into the most important emerging market for these products in the world."

Taisei Kako employs about 950 at nine plants mainly based in Asia. CCL said Taisei Kako has a fully automated, 24-hour manufacturing system with advanced digital inspection technology. It has been producing plastic packaging for the health care and beauty care industries since 1932.

CCL employs about 6,600 in 74 plants around the world. CCL Tube and CCL Containers produce extruded plastic tubes, bottles and aluminum aerosol cans.

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