06.05.2014

Sonoco to Invest $20 Million for New Malaysian Composite Can Plant

Sonoco, one of the largest diversified global packaging companies, announced it will invest $20 million to build a state-of-the-art, high-speed composite can production facility in near Kuala Lampur, Malaysia, which will produce packaging for snacks. In addition, the Company is spending more than $5 million to create the Sonoco Innovative Packaging Solutions™ (IPS™) Studio at its Hartsville, S. C., manufacturing and headquarters complex. Both projects were announced today to shareholders at the Company's annual meeting.

Jack Sanders, president and chief executive officer, told shareholders, "Continued growth for packaged snacks in Southeast Asia requires that we build our third composite can plant in Malaysia. 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."

Sonoco will add three high-speed composite can lines along with two metal end presses. In addition, an extrusion laminator is expected to be installed at the Company's flexible packaging facility in Kajang, Selangor Darul Eshan, Malaysia, to produce can liners. The first can line is expected to be installed in the third quarter of 2014 and begin commercial production in the first quarter of 2015. All three lines, along with the metal end presses and the extrusion laminator are expected to be operational by the end of 2015. When in full production the new Sonoco operation should employ approximately 110 workers.

"In addition to producing all components for the finished composite cans, we will provide and run sophisticated depalletizing equipment at our customer's production facility," Sander said. "This is the first time that we have provided an extended supply chain solution for a composite can customer." "Our goal is become a solutions company that just happens to offer packaging. Our unequalled range of packaging products and services combined with a broad spectrum of technical capabilities and a unique formalized process for innovation allows us to create a holistic solution for our customers such as the opportunity we have in Malaysia," Sanders continued.


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