A joint venture (JV) company of Sonoco Products Company and Cascades is planning to make an investment in its facility in Birmingham, Alabama, US, with an aim to support its water-based coating product line.
As part of the $16m investment, Cascades Sonoco will install new equipment and expand the existing Birmingham facility.
Set to begin by early in 2017, the proposed expansion is expected to be completed by the second quarter of 2018.
Once completed, the new water-based coating line will be able to manufacture 40,000t to 50,000t of sustainable coated materials annually.
Sonoco Products Company paper and engineered carriers senior vice-president Rodger Fuller said: “This investment represents a significant geographic expansion for water-based products by Cascades Sonoco, especially in the fast-growing South-Eastern US.
“With this exciting addition to its product portfolio, Cascades Sonoco remains dedicated to maintain its market leadership position in protective roll packaging for the paper industry.”
Additionally, the company will employ the recently announced investment to expand the use of its new FlexShield, FluteShield and SurfShield coating technology to produce coated paper and paperboard substrates.
Currently being used in the folding carton and corrugated industries, the newly developed technologies feature water-based functional and barrier coatings, which are designed to replace the standard low-density polyethylene (LDPE) coating used in take-out container folding cartons.
The newly developed coating technologies can also function as a wax replacement technology for the corrugated industry.