CCL packaging expands in Asia
expand its presence in Asia in an attempt to capitalize on the
opportunities presented by emerging markets.
The company has announced $25m expansion plans in China, Japan and Vietnam in the hope of doubling its presence in Asia. "Emerging sales now represent approximately 17 per cent of our local business but we would like to see that grow to 30 per cent in the next three to five years," said CEO Geoffrey Martin. According to Martin the expansion is necessary in order to align the company's dealings in the area with that of its important global customers for whom the Asian market is becoming increasingly important. CCL's plans include four new greenfield sites and expansion of existing plants. The company will kickstart business in Vietnam focusing on the personal care industry with the construction of a facility in Ho Chi Minh City. Similarly the packaging company's personal care suppliers will stand to benefit from a new facility in Pune, India. In addition, significant resources will be ploughed into CCL's already existing plant in Hefei, China which supplies the company's home and personal care customers in the Shanghai region. Furthermore the company's centre in Japan, which currently operates as a sales and technical centre, will become a pilot manufacturing facility for personal care labels. According the company sales from the region will reach $40m by the end of 2008. The last five years has seen the packaging company consolidating and honing its business strategy. In 2003 it began doing business in the Asian region with investment in Bangkok, Thailand. This was quickly followed by expansions and further investment in the region. In 2005 the company sold off its Custom Manufacturing Division in an attempt to further concentrate on the personal care packaging industry.
