The new site will be in Tennessee, where Constantia Flexibles already has this paper and pressure-sensitive labels plant. @Constantia Flexibles
In-mold label specialist Verstraete IML will construct a new production site in the US in conjunction with its parent company, Constantia Flexibles.
The new site in Clarksville, Tennessee will allow Verstraete IML to get closer to its customers in the largest growth market for IML labels outside Europe, the company said. The facility will begin production in the second half of 2017 and will have multiple printing presses and finishing lines, creating 55 jobs for the local economy.
Verstraete IML expects to invest around $20 million in its new US plant within a period of three years.
Verstraete IML managing director Koen Verstraete said: “The decision to expand our production capacity with an international site is a huge step for our company. Going to North America will not only strengthen our position as a global leader, but also gives us direct access to North America – the IML market with the best growth potential.”
Mike Henry, executive vice-president of Constantia Flexibles’ labels division, added: “The new site is located in Clarksville, Tennessee, where Constantia Flexibles already has a paper and pressure-sensitive labels plant serving the American beverage and food market. This has many benefits. Constantia has the management, legal and technical experience we need to operate successfully and rapidly in the North American region.”
Verstrate revealed that the company’s Belgian production site near Bruges was ‘thoroughly preparing for the expansion’.
He said: “The plan for North America is ready to be executed. Our US team in Maldegem, Belgium has been working on a roadmap for Verstraete IML USA for more than a year. This plan will now be put into action. The production unit in North America will be run in the same fashion as Verstraete IML in Belgium in terms of the production process and quality – basically, representing 28 years of IML knowhow.”
The two Belgium-based plants in Maldegem and Ursel will continue to operate at the same capacity levels.
“The new production site in North America will result in shorter turnaround times,” Verstrate said, “and a more efficient response to market demand both in North America as in South America, Europe, Asia, the Middle East and Russia and CIS.”
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