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Klöckner Pentaplast announces global capacity expansion

September 11, 2013

The company purports to be the only rigid film producer with manufacturing sites located on four continents.

German plastics manufacturer Klöckner Pentaplast Group has added to its global production capacity in Asia, the Americas and Europe. The company is investing $60.25 million as part of its 2013 and 2014 expansion plans, which include facilities in Cotia, Brazil; Suzhou, China; Newport/Crumlin, Great Britain; and Santo Tirso, Portugal. About 142 employees are being added worldwide.

Klöckner Pentaplast (kp) purports to be the only rigid film producer with manufacturing sites located on four continents - Asia, Europe, North America and South America. kp will add to its UK and European production capacity for polyester films. Primarily used for food and consumer packaging applications, the new capacity will be located at the company's Newport/Crumlin, Great Britain, manufacturing facility. The start-up of the extrusion line is targeted for July 2014 and will add 15 employees. The €6.0 million ($7.93 million) investment will add 8000 tons of capacity.

kp opened its first Chinese production site in the Suzhou Industrial Park in July 2013. The site is producing packaging films for the growing domestic Chinese and Asian markets. The first phase of operations has focused on transverse-direction oriented shrink-label films and houses production equipment, high-tech production control systems and an extensive laboratory. The site has increased Klöckner Pentaplast's global shrink-films capacity by 6600 tonnes to meet double-digit shrink-sleeve growth in Asia. The €22.5 million ($29.73 million) investment employs 76 people.

In Spring 2013, kp added 8000 tons of polyester film capacity to the company's Santo Tirso, Portugal, manufacturing facility. The €5.5 million ($7.27 million) investment supports kp's growing European food and consumer packaging films markets. The expansion added 25 employees.

The company has invested in 1200 tons of additional coating and laminating capacity suitable for the production of Pentapharm alfoil PVdC-coated and Pentapharm ACLAR-laminated packaging films to service the Latin American pharmaceutical industry. Start-up of the coating and laminating capacity will be December 2013.

As previously announced, PVC calendaring capacity will be increased by 12,000 tonnes to service the pharmaceutical, food, print, card, and general-purpose thermoforming markets with capacity coming online in June 2014 followed by matte calendaring capacity in November 2014. kp is investing a total of €11.6 million ($15.33 million), which will add 26 employees. 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.

"Klöckner Pentaplast's 2013 and 2014 expansion plans demonstrate our commitment to supporting our customers around the world with consistent, high-quality film and superior service and technical support," said Christian Holtmann, CEO of Klöckner Pentaplast. "At kp, a critical element of our growth strategy is our dedication to servicing customers' needs now and in the future - wherever they may be located."