Canadian Manufacturing

Toronto-based CCL launches US$30M investment, acquisition plan

The company will invest in new converting technology in the U.S. and Mexico, and acquire a supplier

TORONTO—Specialty label and packaging solutions company CCL Industries Inc. will invest $30 million in its CCL Design operations in the United States and Mexico. The division focuses on the automotive, electronics and domestic appliance markets.

This investment includes the acquisition of the assets of INT America LLC , a Detroit, Mich. producer of metal tread plates for domestic automotive OEMs using third-party component suppliers in Asia.

The new business will trade as an integral part of CCL Design North America with immediate effect. INT posted 2014 sales of $15 million; CCL purchased the assets of the business for $4.75 million in cash. CCL in 2013 acquired INT’s associate company in Germany.

CCL will also build a green field plant in Guanajuato, Mexico and significantly expand its existing U.S. production in Clinton, S.C. and Strongsville, Ohio.

The Company will also invest in new converting technologies to create additional capacity for functional labels, die cut films, decorative laminates and metal tread plates in the U.S. and Mexico.

The company said these capital expenditures will be made over the next 18 months.

“Automotive and other durable goods end-use markets have been beneficiaries of the recent economic recovery in the United States,” said Geoffrey Martin, president and CEO of CCL Industries Inc.

“These investments allow us to offer a common product portfolio to OEM customers globally as CCL Design continues to represent an important new market sector for our company. The metal tread plates we will manufacture in North America match the programs we have had in place in Germany for some years. We expect CCL Design to generate a 20 per cent pre-tax incremental annual return on the additional capital by 2017.”

CCL Industries employs about 10,250 people and operates 99 production facilities in 28 countries on 5 continents with corporate offices in Toronto, Ont., and Framingham, Mass.

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