Innovia To Invest $70 Million in New Films Capacity in Germany
TORONTO, ON / ACCESSWIRE / May 16, 2022 / CCL Industries Inc. ("CCL" or the "Company") (TSX:CCL.A)(TSX:CCL.B) , a world leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses …
TORONTO, ON / ACCESSWIRE / May 16, 2022 / CCL Industries Inc. ("CCL" or the "Company") (TSX:CCL.A)(TSX:CCL.B) , a world leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses and consumers, today announces plans for a significant expansion at its Innovia business unit near Leipzig in Germany. A new 8 metre wide multi-layer co-extrusion line will produce highly engineered thin gauge label films to support growing, sustainability-driven demand for lower resin content materials. The new technology is unique for label films, with 36,000 tons of annual capacity designed for best-in-class energy efficiency. Production will commence in the second half of 2024 with most of the capital deployed across 2023 and 2024.
Guenther Birkner, President of Innovia, commented, "We see significant growth opportunities with films for Pressure Sensitive Labels and plan to use our existing assets in the UK for top coated products and new initiatives, especially in the Commercial Graphics & Signage sector. The new line in Germany will supply thinner films for the label market, close to where many customers are located."
Geoffrey T. Martin, President & CEO of CCL, concluded, "CCL is the world's largest converter of label films directly serving the needs of many global brand owners. This brings the Company unique insights to develop materials at Innovia that match customer needs with the new assets in Germany. Our strategy at Innovia is to deeply focus on label and other specialty end markets."
This press release contains forward-looking information and forward-looking statements (hereinafter collectively referred to as "forward-looking statements"), as defined under applicable securities laws, that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the capital deployment and the production commencement time-frame.