Stock Symbol: TSX - CCL.A and CCL.B TORONTO, Aug. 30 /CNW/ - CCL Industries, a world leader in specialty packaging and labelling solutions for the consumer products and healthcare industries, confirmed today its intention to invest C$45 million over the next two years in its Label, Container and Plastic Tube operations in Mexico. CCL Label Mexico will move to a new state-of-the-art, 140,000 square foot facility in Mexico City. This will include a C$10 million investment in new label converting and pre-press technologies. The new facility will also include high-speed tube extrusion lines with labelling and screen printing decorating capability, allowing the Company to produce high-end plastic tubes in the same building as its personal care label operation. Investment plans also include new leading edge offset and rotogravure printing presses to service the personal care and fast growing beverage label business. The new label and tube facility will be fully operational by the spring of 2007. The plans also include building a greenfield aluminum aerosol and bottle producing plant including new high-speed equipment for both the personal care and beverage markets. The new plant will be approximately 100,000 square feet and located in the Guanajuato region, north of Mexico City, in order to be close to significant customers and easy access to the U.S. market. The new plant is targeted to come on line in early 2008. Commenting on the investments, Donald G. Lang, Vice Chairman and Chief Executive Officer of CCL Industries said, "We see Latin America as an increasingly important geographic growth region for our customers in the consumer products business, with Mexico also playing an important role as a manufacturing centre for products intended for the U.S. market. These investments, which will be funded from cash on hand, coupled with our January 2006 acquisition of Prodesmaq in Brazil, will position CCL to become a leading player in the label and specialty container business in the region." Geoffrey T. Martin, President and Chief Operating Officer of CCL Industries added, "We have been very pleased with the significant growth in sales and profitability from our Mexican business units over the last three years and are highly confident that our management team under the leadership of Ben Lilienthal, Vice President and Managing Director, CCL Mexico will execute these plans and create plants that are best in class on a global basis." CCL Industries manufactures pressure-sensitive labels, aluminum containers and plastic tubes, providing state-of-the-art specialty packaging solutions to global producers of consumer brands in the home and personal care, healthcare and specialty food and beverage sectors. With headquarters in Toronto, Canada, CCL Industries employs approximately 4,600 people and operates 46 production facilities in North America, Europe, Latin America and Asia. CCL's joint venture, ColepCCL operates five plants in Europe and employs approximately 1,800 people. Statements contained in this Press Release, other than statements of historical facts, are forward-looking statements subject to a number of uncertainties that could cause actual events or results to differ materially from some statements made.