CPH Chemie + Papier's packaging division Perlen Packaging is set to build a new film coating production facility in China in a bid to intensify its production as well as distribution activities in the region.
The company is acquiring land in the Shanghai area to set up the new facility over the next two years, with operations expected to commence in 2016.
CPH Group CEO Peter Schildknecht said the group's packaging division, which provides blister packs for the pharmaceuticals market, has achieved steady growth over the last few years.
"Our existing film coating facilities will reach their capacity limits in the next few years, though," Schildknecht added.
The latest Asian expansion will enable the company to respond swiftly to its customer needs locally.
CPH Group packaging division head Wolfgang Grimm said, "With its new production site in the Shanghai area, Perlen Packaging will be ideally positioned to serve the rapidly-growing Chinese pharmaceuticals market."
According to CPH, the demand for blister films is currently seeing double-digit percentage annual growth among pharmaceuticals manufacturers in Asia.
Perlen, which already generates around 20% of its sales in Asia, intends to increase its production and distribution activities in this regional market, particularly in China, as the country is witnessing a substantial increase in demand for medications.
Perlen also has facilities in Perlen of Switzerland, Müllheim of Germany and Whippany of US.
