Food-grade packaging solutions provide D6 has bought Good Natured Products’ extrusion plant in Richmond in the US state of Illinois in an all-cash deal.
The acquisition expands D6’s US manufacturing network and supports its closed-loop production strategy.
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Financial details of the transaction were not revealed.
The Richmond site, which spans about 75,000ft², is already in operation.
The facility brings more than 40 million pounds of additional annual extrusion capacity to D6, with all existing employees expected to move over to the company.
The plant is configured to process a large share of the clean wash flake (CWF) generated at D6’s Omni Recycling Center in Longview, Texas.
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By GlobalDataIt also outlined that linking this extrusion capacity with its recycling operations “strengthens continuity across the platform – enhancing control of the value chain and enabling seamless conversion from reclaimed feedstock to finished product.”
D6 described the acquisition as another milestone in its multi-year programme to build out domestic circular infrastructure for packaging.
The addition of the Richmond facility improves operational resilience, bolsters security of material supply and expedites its capacity expansion plans to cope up with long-term demand from customers.
Good Natured Products focuses on bio-based and environmentally minded packaging and materials for food, consumer and industrial applications, with an emphasis on plant-based solutions.
D6 operates an integrated model spanning thermoforming, extrusion and recycling, producing food-grade packaging that incorporates post-consumer recycled (PCR) content.
D6 chief financial officer Louis Dominion commented: “By expanding our extrusion capacity and pairing it with our internal recycling capabilities, we’re strengthening control from shelf to bale and back to shelf. Most importantly, it gives our customers greater surety of supply and supports their growing need for reliable, high-quality food-grade PCR packaging.”
