Business
CCL Industries Plans to Invest C$45 million to Support Growth of its Mexican Operations
CCL Industries Plans to Invest C$45 million to Support Growth of its Mexican Operations.
About this update from Ccl Industries Inc. Class A
[{"type":"text","content":"\n\n\n\n\nStock Symbol: TSX - CCL.A and CCL.B\n\nTORONTO, Aug. 30 /CNW/ - CCL Industries, a world leader in specialty\npackaging and labelling solutions for the consumer products and healthcare\nindustries, confirmed today its intention to invest C$45 million over the next\ntwo years in its Label, Container and Plastic Tube operations in Mexico.\nCCL Label Mexico will move to a new state-of-the-art, 140,000 square foot\nfacility in Mexico City. This will include a C$10 million investment in new\nlabel converting and pre-press technologies. The new facility will also\ninclude high-speed tube extrusion lines with labelling and screen printing\ndecorating capability, allowing the Company to produce high-end plastic tubes\nin the same building as its personal care label operation. Investment plans\nalso include new leading edge offset and rotogravure printing presses to\nservice the personal care and fast growing beverage label business. The new\nlabel and tube facility will be fully operational by the spring of 2007.\nThe plans also include building a greenfield aluminum aerosol and bottle\nproducing plant including new high-speed equipment for both the personal care\nand beverage markets. The new plant will be approximately 100,000 square feet\nand located in the Guanajuato region, north of Mexico City, in order to be\nclose to significant customers and easy access to the U.S. market. The new\nplant is targeted to come on line in early 2008.\nCommenting on the investments, Donald G. Lang, Vice Chairman and Chief\nExecutive Officer of CCL Industries said, \"We see Latin America as an\nincreasingly important geographic growth region for our customers in the\nconsumer products business, with Mexico also playing an important role as a\nmanufacturing centre for products intended for the U.S. market. These\ninvestments, which will be funded from cash on hand, coupled with our January\n2006 acquisition of Prodesmaq in Brazil, will position CCL to become a leading\nplayer in the label and specialty container business in the region.\"\nGeoffrey T. Martin, President and Chief Operating Officer of CCL\nIndustries added, \"We have been very pleased with the significant growth in\nsales and profitability from our Mexican business units over the last three\nyears and are highly confident that our management team under the leadership\nof Ben Lil...