CCL Industries Inc. (“CCL”), a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers announced today that it has signed a binding agreement to build a new manufacturing plant for in-mould- labels (“IML”) in Memphis, Tennessee, in partnership with Korsini-SAF (“Korsini”), a leading European IML producer headquartered in Izmir, Turkey.
The partners will invest approximately $20 million between them, in a combination of debt and equity, each owning 50% of the new company. It is expected to be in operation by mid- 2016 and will trade as CCL-Korsini.
Guenther Birkner, President of CCL Label’s Food & Beverage business commented, “IML for injection moulded containers was successfully introduced in Europe some years ago and we now see a similar development in this rapidly growing decoration technology in North America. Korsini is an advanced technology partner already servicing injection moulded container customers in North America with products exported from Turkey. Our role in the venture is to support local manufacturing, provide market access to brand owner customers and manage administration.”
Enrico Corsini, President & CEO and significant shareholder in Korsini added, “CCL is the world’s largest label company with extensive presence in North America, which has become our fastest growing export market. Contributing our technical expertise to manufacturing while controlling injection molded container customer relationships will ensure we get the new venture rapidly established and take a very strong market position.”
Geoffrey T. Martin, President & CEO of CCL concluded, “This is an important addition to our fast growing Food & Beverage business. CCL will oversee the construction of a new 70,000 square foot facility immediately adjacent to our Specialty label operation in Memphis where the venture will be based.”