Coveris has agreed to take over the business and assets of GEFO Folienbetrieb, a cast polypropylene (CPP) film manufacturer in Gera, Germany.
Financial terms of the deal remain undisclosed.
The transaction gives Coveris additional CPP production capacity and extends its presence in speciality CPP uses.
The move comes after investment in film extrusion equipment across the group’s sites.
Coveris is increasing its CPP extrusion footprint in response to demand for recyclable mono-material packaging formats.
The deal adds to its recyclable packaging range and is intended to support its ‘No Waste’ sustainability vision and increasing vertical integration across its network.
It said the added capacity may help customers prepare for the European Packaging and Packaging Waste Regulation (PPWR) and Extended Producer Responsibility (EPR) rules.
Before the deal, Coveris Kufstein was Coveris’ only CPP extrusion facility and was running at full capacity, according to the statement.
By bringing in GEFO’s operations, Coveris will raise CPP output and widen its offering in areas such as retort packaging, lidding films, bakery bags, medical packaging and other non-food applications.
Coveris CEO Christian Kolarik said: “GEFO is an excellent addition to our existing network and further strengthens our sustainability strategy.
“Demand for recyclable mono-material packaging continues to grow across Europe, making the expansion of our CPP capabilities for high-performance applications a logical next step.
"Through this acquisition, we are strengthening our production base and enhancing our ability to provide customers with innovative and sustainable packaging solutions that meet both evolving market needs and future regulatory requirements.”
In April, Coveris launched MonoFlexFibre Pure Twist, a paper-based packaging material for confectionery products.
The material is intended as a substitute for other formats used in twist-wrapped sweets such as lollipops, hard candies and chocolates, and for heat-sealable flow-pack applications for bars and sticks.
