TORONTO—Canada’s Atlantic Packaging Products Ltd. has announced plans to invest more than $40 million in a new joint venture that will establish a corrugated packaging plant in Illinois, creating more than 100 jobs.
According to Toronto-based Atlantic, the BlackHawk Corrugated joint venture will be co-owned and operated with StandFast Packaging Products Inc., and will be located in Carol Stream, Ill., located about 50 kilometres west of Chicago.
“Atlantic is prepared to move quickly and offer new (joint venture) opportunities to independent box plants across several U.S. regions that will create multiple profit centres for our partners and a clear path to full vertical integration that the traditional sheet feeder models simply cannot support,” Atlantic president Dave Boles said in a statement.
“We are not just looking for sheet supply contracts, but are also seeking to build true partnerships that will thrive and grow with us in the U.S. markets.”
With “rapid consolidation trends” taking place in the corrugated packaging markets in the United States and Canadian, Atlantic’s expansion into several competitive U.S. markets is a critical part of its long-term growth strategy, according to the company.
Atlantic selected G2 Capital Advisors LLC as its exclusive strategic advisor to lead the execution of its U.S. growth initiative.
Chicago is the first of several joint venture initiatives that Atlantic is currently in the process of developing across the Midwest and Northeastern regions of the U.S., the company said.
“We have spoken with a significant number of independent box plants located across the Midwest and Northeast and there is clearly an appetite for them to secure their long-term paper supply with a reputable, quality supplier who offers competitive market pricing,” said Jeffrey Unger, CEO at G2 Capital Advisors.
“Additionally, those business owners we have spoken to who have a more sophisticated understanding of the markets and a well-defined growth strategy are intrigued by what Atlantic can offer them; a true long-term partnership with an investment model that can expedite and support their growth through multiple profit centres, beyond just sheet supply, in times of economic uncertainty within these markets.”
The BlackHawk joint venture is expected to be fully operational by late 2015.