02.18.15
CCL Industries Inc., the world's largest PS label converter, will invest $30 million in its CCL Design operations in the United States and Mexico that focus on the automotive, electronics and domestic appliance markets.
This investment includes the acquisition of the assets of INT America LLC, a private company based in Detroit, MI, USA that has built a market for metal tread plates for domestic automotive OEMs using third party component suppliers in Asia. The new business will trade as an integral part of CCL Design North America with immediate effect. INT posted 2014 sales of $15 million; CCL purchased the assets of the business for $4.75 million in cash effective February 6, 2015. CCL already acquired INT's associate company in Germany in 2013.
Additionally, CCL will build a green field plant in Guanajuato, Mexico and significantly expand its existing production facilities in the US in Clinton, SC and Strongsville, OH. The company will also invest in new converting technologies to create additional capacity for functional labels, diecut films, decorative laminates and metal tread plates in the United States and Mexico. Capital expenditures in the Mexican facility, plant expansions in the United States and equipment purchases will be made over the course of the next 18 months.
Geoffrey Martin, president & CEO of CCL Industries Inc., comments, "Automotive and other durable goods end-use markets have been beneficiaries of the recent economic recovery in the United States. These investments allow us to offer a common product portfolio to OEM customers globally as CCL Design continues to represent an important new market sector for our Company. The metal tread plates we will manufacture in North America match the programs we have had in place in Germany for some years. We expect CCL Design to generate a 20% pre-tax incremental annual return on the additional capital by 2017."
CCL Industries now employs approximately 10,250 people and operates 99 production facilities in 28 countries on 5 continents with corporate offices in Toronto, Canada, and Framingham, MA, USA.
This investment includes the acquisition of the assets of INT America LLC, a private company based in Detroit, MI, USA that has built a market for metal tread plates for domestic automotive OEMs using third party component suppliers in Asia. The new business will trade as an integral part of CCL Design North America with immediate effect. INT posted 2014 sales of $15 million; CCL purchased the assets of the business for $4.75 million in cash effective February 6, 2015. CCL already acquired INT's associate company in Germany in 2013.
Additionally, CCL will build a green field plant in Guanajuato, Mexico and significantly expand its existing production facilities in the US in Clinton, SC and Strongsville, OH. The company will also invest in new converting technologies to create additional capacity for functional labels, diecut films, decorative laminates and metal tread plates in the United States and Mexico. Capital expenditures in the Mexican facility, plant expansions in the United States and equipment purchases will be made over the course of the next 18 months.
Geoffrey Martin, president & CEO of CCL Industries Inc., comments, "Automotive and other durable goods end-use markets have been beneficiaries of the recent economic recovery in the United States. These investments allow us to offer a common product portfolio to OEM customers globally as CCL Design continues to represent an important new market sector for our Company. The metal tread plates we will manufacture in North America match the programs we have had in place in Germany for some years. We expect CCL Design to generate a 20% pre-tax incremental annual return on the additional capital by 2017."
CCL Industries now employs approximately 10,250 people and operates 99 production facilities in 28 countries on 5 continents with corporate offices in Toronto, Canada, and Framingham, MA, USA.