Klöckner Pentaplast to expand global packaging film production capacity

6 November 2012 (Last Updated November 6th, 2012 18:30)

Rigid films producer Klöckner Pentaplast is set to invest $51.8m to add to its global production capacity with facilities in Suzhou, China; Cotia, Brazil; and Santo Tirso, Portugal.

Rigid films producer Klöckner Pentaplast is set to invest $51.8m to add to its global production capacity with facilities in Suzhou, China; Cotia, Brazil; and Santo Tirso, Portugal.

Klöckner will invest $15.1m in a new Brazilian manufacturing facility, with 1,200t of additional coating and laminating capacity to produce Pentapharm alfoil PVdC-coated and Pentapharm ACLAR-laminated packaging films for the Latin American pharmaceutical industry.

The company will also increase the PVC calendaring capacity by 12,000t to serve the pharmaceutical, food, print, card, and general-purpose thermoforming markets.

Start up of the capacity is expected in autumn 2013, while calendering capacity will come online in spring 2014, followed by matte calendering capacity in autumn 2014.

According to the company, the new capacity will further complement the group's existing film production capacity at two facilities in Latin America, Villa del Totoral, Argentina, and Cotia, Brazil.

Klöckner will add to its European portfolio by investing $7.2m at a new production site in Portugal to produce polyester films, which will be mainly used for food and consumer packaging applications.

Start up of the new extrusion line is scheduled for winter 2013 and the investment will add 8,000t of capacity.

The company will open its first Chinese production site in the Suzhou Industrial Park in spring 2013 with an investment of $29.5m.

The site, which is expected to increase Klöckner's global shrink-films capacity by 6,000t, will produce packaging films for the growing domestic Chinese market.

Initially, the operations will focus on transverse-direction oriented shrink-label films and accommodate production equipment, production control systems and a research and development laboratory.

Klöckner Pentaplast chief executive officer Christian Holtmann said with the support and partnership of its new shareholder, the company will remain focused on its core strengths.

"Klöckner Pentaplast's 2013 expansion plans reflect our dedication to servicing customers' needs now and in the future," Holtmann said.