Packaging products and systems company Intertape Polymer Group (IPG) has expanded its Midland, North Carolina, US, production facility with the addition of second water-activated tapes line.
The company has invested $13.4m to establish the second line, which is expected to double the production capacity of the plant. The second line is currently manufacturing commercial tapes at scale.
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IPG president and CEO Greg Yull said: “Our expansion at Midland enables us to match production with the growth in demand we are experiencing now and anticipate in the future.
“The second line leverages the original investment at the facility, which is on track to meeting our after-tax internal rate of return threshold of 15%.
“As such, we anticipate a step function improvement in the return from the second line once it’s operating at optimal production. As a result, the second line is an important element of our two-year capital investment plan in which we targeted $80 to $90 million in deployed capital in fiscal 2017 and 2018.”
IPG established the Midland facility in 2017 and invested approximately $48m to commission the first line in the fourth quarter of 2017.
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By GlobalDataIntertape Polymer produces water-activated tapes at its facility in Menasha, Wisconsin.
Yull added: “Given the growth in e-commerce as a proportion of the retail market, the expansion at Midland, together with our acquisition of protective packaging solutions, strengthens our product bundle for our direct accounts that are leaders in the e-commerce market.”
Last November, IPG completed the acquisition of the remaining 26% interest in India-based packaging tapes manufacturer Powerband Industries for $9.9m.
