Global packaging company Sonoco will increase its production capabilities and support R&D innovation through several projects in the coming years.
The company made the announcement at its annual shareholders meeting.
Sonoco said that new projects would be on top of its recently completed acquisition of a majority interest in Brazil's flexible packaging company Graffo Paranaense de Embalagens.
The company will be investing around $20m to buy a new triplex laminator for its Ohio plant which will help support its growth in the hot-fill pouch market and sophisticated lamination structures.
A part of the $20m will also be spent on purchasing a rotogravure printing press for its plant in Texas, which the company say, will ensure quick changeovers to help improve production speeds and reduce waste while driving energy efficiency.
Sonoco is purchasing both the equipments from Bobst Corporation that is expected to start operation in the second quarter of 2016.
The company will also be investing approximately $20m to expand composite cans with the construction of a new composite can facility near Kuala Lumpur. This facility will help the company support the growing snack can market in Southeast Asia.
Additionally, the company will build a second composite can plant in the south of China later in 2015 that is expected to triple its capacity to meet the demand of local market.
The company will also get a new Innovative Packaging Solutions (IPS) research and development studio worth $11.9m which will feature a consumer interaction studio for live, direct observation of consumers interacting with products and packaging in areas representing retail, kitchen, living and bathroom environments.
Image: The company has acquired a rotogravure printing press for its plant in Texas as a part of its growth plans. Photo: courtesy of Sonoco.
