Cascades Sonoco – the joint venture between Sonoco and recycled fibre packaging company Cascades – will invest around $16 million in its plant in Alabama to manufacture water-based alternatives to the coatings used in fast food packaging.
The water-based coatings will replace low-density polyethylene (LDPE) coatings on folding cartons – for uses such as burgers, hot dogs and kebabs – which provide barrier protection against water and water vapour. LDPE is also used as a heat sealant, particularly when two sides of the packaging are extrusion coated.
The polymer has traditionally been popular among packaging manufacturers for its performance, alongside its cost effectiveness.
But Cascades Sonoco said that its water-based offerings provide the added bonus of being recyclable, repulpable, and compostable.
The $16 million investment in the site in Birmingham will focus on expanding the plant and installing new equipment to manufacture the coatings using Cascades Sonoco’s FlexShield, FluteShield and SurfShield technologies.
Installation will begin early this year and start-up is expected in the second quarter of 2018.
The coatings are used as a barrier for folding cartons used in the fast food industry.
Sonoco senior vice-president Rodger Fuller said: “This investment represents a significant geographic expansion for water-based products by Cascades Sonoco, especially in the fast-growing southeastern United States. With this exciting addition to its product portfolio, Cascades Sonoco remains dedicated to maintaining its market leadership position in protective roll packaging for the paper industry.”
Once at full capacity, the new water-based coating line will be capable of producing 40,000-50,000 tons of sustainable coated materials every year.
Cascades Speciality Products president and COO Luc Langevin added: “This strategic investment will certainly help Cascades Sonoco to expand its product offerings into high-growth, consumer-oriented markets.”
The companies put on record their thanks for the support of the Birmingham Business Alliance, which influenced their decision to invest in the region.
Jefferson County commissioner David Carrington said that the cash injection was ‘a testament to the business climate and workforce’ of the area.
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