Sonoco Announces New Consumer Growth Projects


Sonoco announces that it will increase production capabilities and support R&D innovation through several significant growth projects for its consumer packaging businesses.

Jack Sanders, president and chief executive officer, announced Sonoco will spend approximately $20 million to purchase a new triplex laminator and rotogravure printing press. The new laminator will be placed in the company’s Franklin, Ohio, plant and encompasses the very latest in three-layer lamination technology to produce high-quality laminates with minimum material waste, across a wide range of flexible substrates with varying thicknesses and a variety of adhesive systems.
The investment supports Sonoco’s growth in the hot-fill pouch market and sophisticated lamination structures.
The new 11-color rotogravure press is based on the latest advances in registration control to allow for quick changeovers, thus improving production speeds and reducing waste while driving energy efficiency.
The new press will be placed in the company’s Waco, Texas, plant and drive market growth using Sonoco’s patented easy-open and reclose technology. Both the triplex laminator and rotogravure press are being purchased from Bobst Corp., and are targeted for startup in the second quarter of 2016.
These flexible packaging expansion projects are on top of the company’s recently completed acquisition of a majority interest in Graffo Paranaense de Embalagens S/A (Graffo), a closely held flexible packaging business located in Pinhais, Curitiba, Brazil. Graffo had sales of approximately $35 million USD in 2014 and operates high-quality rotogravure printing presses, including a new 10-color press, as well as sophisticated lamination applications at its Pinhais facility. Graffo serves the confectionery, dairy, pharmaceutical and industrial markets in Brazil, and Sonoco expects to add to the operation’s lamination capacity in 2016.
Sanders also updated shareholders on investments the Company is making to expand composite cans in emerging markets. For instance, Sonoco is investing $20 million to build and start up a new composite can facility near Kuala Lumpur, Malaysia, to support the growing snack can market in Southeast Asia. Initial production will commence in the second quarter of 2015, with full production expected in early 2016. In addition, the Company expects to build a second composite can plant in the south of China later in 2015. This investment will triple Sonoco’s capacity to meet local market demand when fully operational in early 2016.

Sonoco is a multi-billion dollar global provider of consumer packaging, industrial products, protective solutions and display and packaging services. With headquarters in Hartsville, S.C. and more than 335 operations in 33 countries, Sonoco produce packaging for a variety of industries and many of the world’s most recognized brands,in turn serving customers in 85 nations.