CCL Industries Inc. forms joint venture closure company with PPC America
With a combined sales volume exceeding US $20 million, the new company will be called CCL Dispensing Systems. CCL Industries will be the majority owner in this partnership with the major shareholders of PPC America owning the balance. Based in Libertyville, Illinois, PPC is recognized as a leader in injection molding for a long list of product lines, including closures, deodorant sticks and other custom molded products.
The venture fits with CCL's ongoing consolidation strategy, as it will involve the phasing out of manufacturing of Press Top(TM) closures at the company's Los Angeles-based plastic packaging facility. Over the next few months, Press Top(TM) molding equipment will be moved from the California facility to Illinois, to ensure a smooth transition for customers. Once the transfer is complete, tentatively by late September 2001, the new company will employ about 100 people.
"The new company will be a highly-skilled organization focused on the growth and development of dispensing systems. When fully operational, it will allow our L.A. facility to concentrate on its expertise of providing CCL customers with innovative, high quality plastic tubes," said Donald G. Lang, President and CEO of CCL Industries. "This venture with PPC is a reflection of the process being undertaken by CCL to focus our business and streamline our operations."
Peter Gamoff, President of PPC America, commented that, "the coming together of our organizations allows PPC to leverage its manufacturing capability with CCL's significant customer base, consisting of major marketers of branded products in the personal care and cosmetics industry." Mr. Gamoff has extensive experience in the plastics industry and will continue as President of CCL Dispensing Systems.
CCL Industries (TSE CCL.B), with revenues of approximately $1.6 billion, is a creative, outsourcing partner to some of the world's largest producers of consumer brands, helping them to get their products to market quickly and cost- effectively. Areas of expertise include custom manufacturing; state-of-the-art packaging solutions, including specialty aluminum and plastics packaging; and innovative product labeling. CCL develops solutions for producers of leading consumer brands in personal care, cosmetic, pharmaceutical, household and specialty food products. With headquarters in Toronto, Canada, CCL employs 7,500 people and operates 33 production facilities in North and Central America and Europe.
Statements contained in this Press Release, other than statements of historical facts, are forward-looking statements subject to a number of uncertainties that could cause actual events or results to differ materially from some statements made.
Source: CCL Industries Inc.