Food packaging manufacturer Coveris has reached an agreement to acquire two Hosokawa Alpine coextrusion lines located at Gelpack’s site in Madley, UK.
Under the agreement with KPMG, the appointed administrators of Gelpack, Coveris will also purchase additional manufacturing assets from the site besides the two five-layer coextrusion lines.
The company is currently planning to integrate new coextrusion lines in its existing operations, while the investment is expected to support its expansion plan in the UK as a provider of functional and barrier films.
Coveris UK Food & Consumer president Gary Rehwinkel said: “Coveris has seen significant growth in the demand for multi-layer coextruded PE films and it has been part of our strategic plan to meet growing demand and support future growth through investment.
“The introduction of this machinery provides Coveris with additional 5K tonnes of five-layer coextrusion capacity, enabling us to better serve our customers.”
Coveris has developed an extensive research and development technology in extrusion and coextrusion manufacturing at its site in Winsford, Cheshire, with additional capabilities in Louth, Lincolnshire.
Earlier this year, Coveris invested £3m at its cartonboard division, which comprises three sites in Cambridgeshire.
Besides the renovation of the division, the investment was used to purchase a Komori GLX 640C lithographic press machine.
The Cambridgeshire division focuses on manufacturing cartonboard and hybrid packaging formats for the food industry.