CCL Industries has signed an agreement to build a new plastic tube manufacturing and decorating plant in Bangkok, Thailand in collaboration with Taisei Kako, a Japanese producer of plastic containers.
A total of $5m will be invested by the partners in equity to commence the joint venture with initial capacity provided through equipment transfers from existing CCL and Taisei Kako tube operations.
According to Canada-based CCL, the partners will each own 50% of the new company.
CCL Industries president and CEO Geoffrey Martin said Taisei Kako will enable the company build its tube business in Asia.
"The new operation will focus on selling tubes alongside labels to existing CCL customers in the Home & Personal Care sector in South East Asia, while exporting products to customers of Taisei Kako in the same sector in Japan," Martin said.
Taisei Kako, which produces containers for the personal care and pharmaceutical markets, has a fully automated manufacturing system with advanced digital inspection technology.
