A new third plant in Bangkok, Thailand will provide increased capacity and new technologies to support Home & Personal Care (HPC) and Beverage customers in South East Asia. CCL expects its Asian operations to approach 10% of global label revenues in 2012. Construction has also commenced on a new pressure sensitive label facility in Vinhedo near Sao Paulo to support HPC and Healthcare customers in Brazil. The new site will more than double the size of existing operations. Additional converting capacity will also be added to the Brazilian Sleeve plant in Criciuma to support rapid growth in the Food & Beverage sector. Finally, the Pacman-CCL joint venture will open a new greenfield plant in Jeddah, Saudi Arabia this fall to expand the Company's footprint in the Gulf States of the Middle East.
Geoffrey Martin, President and CEO of CCL Industries Inc. said, "Emerging Market revenues now represent approximately 20% of the Company's total sales and we expect growth to continue to accelerate at a premium to the developed world in the coming years as our customers invest to drive improvement in consumers' lives in these regions. It therefore makes both strategic and shareholder value sense to allocate a higher portion of capital to these geographies. Despite this investment we do not expect overall expenditures to exceed depreciation company-wide in either 2011 or 2012."