Business
CCL Industries Announces $25 Million Expansion Plan for its Asian Label Operations
Stock Symbol: TSX - CCL.A and CCL.B TORONTO, June 17 /CNW/ - CCL Industries Inc., a world leader ...
About this update from Ccl Industries Inc. Class A
[{"type":"text","content":"\n\n\n\nStock Symbol: TSX - CCL.A and CCL.B\n\n\nTORONTO, June 17 /CNW/ - CCL Industries Inc., a world leader in specialty\npackaging solutions for the consumer products and healthcare industries,\nannounced today that it plans to invest $25 million over 2008 and 2009 to\nexpand its CCL Label operations in the rapidly developing Asian region. The\nCompany began doing business in Asia five years ago with its 2003 investment\nin Bangkok, Thailand which has subsequently undergone two expansions. In 2006\nand 2007 CCL invested in additional operations in Guangzhou and Hefei in\nChina. At the current pace, sales in Asia will reach approximately $40 million\nin 2008.\n\n\nThe Company announced that it will build four new greenfield plants and\nalso expand some of its existing facilities in the region. A second new plant\nin Bangkok, Thailand will produce beverage and battery label products for\nSouth East Asia and Australia. CCL will enter Vietnam with a new facility in\nHo Chi Minh City, focused on personal care products. A new start-up in Pune,\nIndia will focus on personal care and healthcare customers and a new\ngreenfield site in Tianjin will become the Company's first healthcare plant in\nChina as well as produce labels for personal care customers. Investments will\nalso be made to expand the capability of the Hefei, China plant to supply home\nand personal care products to global customers located in the important\nShanghai region. The Company's sales and technical centre in Japan will be\nexpanded to become a pilot manufacturing facility for personal care labels.\n\n\nGeoffrey Martin, President and CEO of CCL Industries said, "All of our\nexisting operations in Asia are now solidly profitable and we have formed an\nexcellent team of local managers who have ambition to grow. Emerging market\nsales now represent approximately 17% of our Label business but we would like\nto see that grow to 30% in the next three to five years to be more closely\naligned with the sales of our important global customers. This would require\nus to more than double the size of our existing presence in Asia. We believe\nthe highly successful organic growth model that we have deployed in this\nregion should be continued, at least for our core markets and will provide\nincreased benefits to our customers and shareholders."\n\n\nWith headquarte...