Canadian specialty packaging company CCL Industries has announced plans to invest $8m in a new wine label plant in Sonoma, California, US.
CCL president and chief executive officer Geoffrey Martin said that coupled with the company's existing investments in Santiago, Chile, and Portland, Oregon, the new plant will complete the platform to sustain its leadership position in the Americas.
"We expect the new plant to commence operations by the fourth quarter of 2012, and will supply customers from our existing operations in the meantime," Martin added.
According to the company, the plant will be equipped with the latest label converting technologies and is planning to reach plant profitability in the second year of production.
US wine production in 2011 exceeded 300 million cases and has grown at a consistent pace over the last two decades.
As producers opt for pressure-sensitive technology and develop increasingly complex designs to represent the brand signatures of wineries, wine continues to be a growth sector in the label industry, the company said.
Last month, CCL entered into a joint venture (JV) with a Chilean investment holding company, which will invest $10m in Chile's wine labelling market.
CCL Industries converts pressure-sensitive and film materials for label applications, and operates 71 production facilities across the globe.