Global packaging firm Sonoco has announced plans to invest about $20m in the establishment of a composite can production plant for snacks packaging in Kuala Lumpur, Malaysia.
The company will also add three additional high-speed composite can lines along with two metal end presses. An extrusion laminator for can liners production would also be installed at its flexible packaging facility located at Kajang in Selangor Darul Eshan.
According to the company, the first can line would be installed in the third quarter of 2014, with commercial production slated to begin in the first quarter of 2015.
All three lines, along with the metal end presses and the extrusion laminator would become operational by the end of 2015.
Sonoco president and chief executive officer Jack Sanders said the company decided to build its third composite can plant in Malaysia after noticing the profitable business for packaged snacks in Southeast Asia.
"The new facility will be located on our customer's new manufacturing complex and will more than triple our current can production capacity in Malaysia," Sanders added.
Sonoco will also provide and run a depalletizing equipment at its customer's production plant, in addition to producing all components for the finished composite cans.
Further, the company plans to create the Sonoco Innovative Packaging Solutions (IPS) Studio at Hartsville in South Carolina, US, with an investment of over $5m .
Sonoco said designs of its IPS Studio are being finalized and renovations are planned with about $5m investment to begin this summer to convert the existing two-storey packaging development center into the IPS Studio by 2014-end.
