Klöckner Pentaplast announces further global capacity expansion

The company is investing €45.6 Mio as part of its 2013 and 2014 expansion plans, which include facilities in Cotia, Brazil; Suzhou, China; Newport/Crumlin, Great Britain; and Santo Tirso, Portugal. 142 highly skilled employees are being added worldwide. Klöckner Pentaplast is the only rigid film solutions producer with manufacturing sites located on four continents – Asia, Europe, North America, and South America.

Newport/Crumlin, Wales, Great Britain, manufacturing facility expansion
kp will add to its UK and European production capacity for polyester films. Primarily used for food and consumer packaging applications, the new capacity will be located at the company’s Newport/Crumlin, Great Britain, manufacturing facility. The start-up of the state-of-the-art extrusion line is targeted for July 2014 and will add 15 employees. The €6.0 Mio investment will add 8,000 metric tons of capacity.

Suzhou, China, manufacturing facility online
kp opened its first Chinese production site in the Suzhou Industrial Park (Suzhou, China) in July 2013. The site is producing packaging films for the growing domestic Chinese and Asian markets. The first phase of operations has focused on transverse-direction oriented shrink-label films and houses state-of-the-art production equipment, high-tech production control systems, and an extensive laboratory. The site has increased Klöckner Pentaplast’s global shrink-films capacity by 6,600 metric tons to meet double-digit shrink-sleeve growth in Asia. The €22.5 Mio investment employs 76 people.

Santo Tirso, Portugal, production site online
In Spring 2013, kp added 8,000 metric tons of polyester film capacity to the company’s Santo Tirso, Portugal, manufacturing facility. The €5.5 Mio investment supports kp’s growing European food and consumer packaging films markets. The expansion added 25 employees.

Cotia (São Paulo), Brazil, manufacturing facility expansion
The company has invested in 1,200 metric tons of additional coating and laminating capacity suitable for the production of Pentapharm® alfoil® PVdC-coated and Pentapharm® ACLAR®-laminated packaging films to service the Latin American pharmaceutical industry. Start-up of the coating and laminating capacity will be December 2013.

As previously announced, PVC calendering capacity will be increased by 12,000 metric tons to service the pharmaceutical, food, print, card, and general-purpose thermoforming markets with capacity coming online in June 2014 followed by matte calendering capacity in November 2014. kp is investing a total of €11.6 Mio which will add 26 employees. The new capacity further complements the Group’s existing film production capacity at two facilities in Latin America, Villa del Totoral, Argentina, and Cotia, Brazil.

“Klöckner Pentaplast’s 2013 and 2014 expansion plans demonstrate our commitment to supporting our customers around the world with consistent, high-quality film and superior service and technical support,” comments Christian Holtmann, Chief Executive Officer. "At kp, a critical element of our growth strategy is our dedication to servicing customers’ needs now and in the future – wherever they may be located.”