Canada-based specialty label and packaging solutions provider CCL Industries will be investing in a new plant to produce aluminum slugs used in the impact extrusion process to make aerosol cans, tubes and bottles for consumer packaged goods companies.
The facility will be based in Clinton, North Carolina, and will be jointly owned by CCL and Germany-based Rheinfelden Semis, a leading European producer of aluminum slugs for aerosol cans.
The two companies will initially invest around $18m, out of which $4.5m will be financed in equity between them and the balance in debt, to build up capacity to planned 25,000 tons by 2018.
The new entity will be called Rheinfelden Americas.
CCL Label manufactures pressure sensitive and extruded film materials for a wide range of decorative, instructional and functional applications for large global customers in the consumer packaging, healthcare, automotive and consumer durables markets. Extruded & laminated plastic tubes, folded instructional leaflets, precision printed & die cut metal components with LED displays and other complementary products and services are sold in parallel to specific enduse markets.
Speaking about the investment, president and CEO of CCL Industries Geoffrey Martin said: "For many years the North American impact extrusion industry has relied on a single domestic supplier of aluminum slugs. This new venture will create a second source both for CCL Container and other players in the market.
"Our role in the business will be to provide financial administration, a portion of the volume and manage our investment through the venture's Board. Our partner will be responsible for the technology to scale up the plant, manage operations and handle commercial relations with third party customers."
Aluminum Rheinfelden Group CEO Alois Franke said: "The market for aluminum aerosol cans and slugs is characterized by a steady growth globally. We are happy to extend in partnership with CCL our production facilities to Clinton, North Carolina, serving the Americas with aluminum slugs. Aside from this Rheinfelden produces primary casting alloys and electrode paste."
