TORONTO, ONTARIO--(Marketwire - Mar 25, 2013) - CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B), a world leader in specialty packaging solutions for the consumer products and healthcare industries, announced today that it has signed a binding agreement to build a new plastic tube manufacturing and decorating plant in Bangkok, Thailand in partnership with Taisei Kako Co., Ltd., a leading Japanese producer of specialty plastic containers for the personal care and pharmaceutical markets headquartered in Osaka. Between them the partners will invest a total of US$5 million in equity to start the joint venture with initial capacity provided through equipment transfers from existing CCL and Taisei Kako tube operations. The partners will each own 50% of the new company. CCL's interest in the joint venture will be represented by Jim Anzai, Vice President and Managing Director of its Asian operations.
Geoffrey Martin, President and CEO of CCL Industries said, "We are very pleased to have found such an advanced technology company as Taisei Kako to help us build our Tube business in Asia. The new operation will focus on selling tubes alongside labels to existing CCL customers in the Home & Personal Care sector in South East Asia, while exporting products to customers of Taisei Kako in the same sector in Japan. We believe this is an excellent opportunity for CCL to expand our successful Tube business into the most important emerging market for these products in the world."
Having its headquarters in Osaka, Japan, Taisei Kako currently employs approximately 950 people in 9 plants mainly located in Asia to meet the needs of customers demanding high quality cosmetic, medical and pharmaceutical packaging. Taisei Kako has a fully automated round the clock manufacturing system with highly advanced digital inspection technology. Taisei Kako has produced high quality plastic packaging for healthcare and beauty care customers in Japan since it was founded in 1932.
With headquarters in Toronto, Canada, CCL Industries currently employs approximately 6,600 people in 74 plants globally located to meet the sourcing needs of large international customers. CCL Label is the world's largest converter of pressure sensitive and film materials for label applications and sells to leading global customers in the consumer packaging, healthcare, automotive and consumer durable segments. CCL Container and CCL Tube are leading producers of aluminum aerosol cans, bottles and extruded plastic tubes for the consumer products industry in North America.
This press release contains forward-looking information and forward-looking statements, as defined under applicable securities laws, (hereinafter collectively referred to as "forward-looking statements") that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the anticipated success of the joint venture; and the Company's expectations regarding general business and economic conditions. Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the evolving global financial crisis and its impact on the world economy and capital markets; the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological change; changes in government regulations; risks associated with operating and product hazards; and CCL's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: global economic recovery and higher consumer spending; improved customer demand for the Company's products; continued historical growth trends, market growth in specific segments and entering into new segments; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum costs; the availability of cash and credit; fluctuations of currency exchange rates; the Company's continued relations with its customers; and general business and economic conditions.
Should one or more risks materialize or should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found in the MD&A section of CCL's 2012 Annual Report, particularly under Section 4: "Risks and Uncertainties." CCL's annual and quarterly reports can be found online at www.cclind.com and www.sedar.com or are available upon request. Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on CCL's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.
For more details on CCL, visit our website - www.cclind.com.
For more details on Taisei Kako, visit their website - http://www.taisei-g.co.jp/english/.