CCL Industries Announces Creation of CCL Taisei Tube Joint Venture in Asia
TORONTO, ONTARIO -- (Marketwire) -- 03/25/13 -- CCL Industries Inc.
(TSX:CCL.A)(TSX:CCL.B), a world leader in specialty packaging
solutions for the consumer products and healthcare industries,
announced today that it has signed a binding agreement to build a new
plastic tube manufacturing and decorating plant in Bangkok, Thailand
in partnership with Taisei Kako Co., Ltd., a leading Japanese
producer of specialty plastic containers for the personal care and
pharmaceutical markets headquartered in Osaka. Between them the
partners will invest a total of US$5 million in equity to start the
joint venture with initial capacity provided through equipment
transfers from existing CCL and Taisei Kako tube operations. The
partners will each own 50% of the new company. CCL's interest in the
joint venture will be represented by Jim Anzai, Vice President and
Managing Director of its Asian operations.
Geoffrey Martin, President and CEO of CCL Industries said, "We are
very pleased to have found such an advanced technology company as
Taisei Kako to help us build our Tube business in Asia. The new
operation will focus on selling tubes alongside labels to existing
CCL customers in the Home & Personal Care sector in South East Asia,
while exporting products to customers of Taisei Kako in the same
sector in Japan. We believe this is an excellent opportunity for CCL
to expand our successful Tube business into the most important
emerging market for these products in the world."
Having its headquarters in Osaka, Japan, Taisei Kako currently
employs approximately 950 people in 9 plants mainly located in Asia
to meet the needs of customers demanding high quality cosmetic,
medical and pharmaceutical packaging. Taisei Kako has a fully
automated round the clock manufacturing system with highly advanced
digital inspection technology. Taisei Kako has produced high quality
plastic packaging for healthcare and beauty care customers in Japan
since it was founded in 1932.
With headquarters in Toronto, Canada, CCL Industries currently
employs approximately 6,600 people in 74 plants globally located to
meet the sourcing needs of large international customers. CCL Label
is the world's largest converter of pressure se
nsitive and film
materials for label applications and sells to leading global
customers in the consumer packaging, healthcare, automotive and
consumer durable segments. CCL Container and CCL Tube are leading
producers of aluminum aerosol cans, bottles and extruded plastic
tubes for the consumer products industry in North America.
This press release contains forward-looking information and
forward-looking statements, as defined under applicable securities
laws, (hereinafter collectively referred to as "forward-looking
statements") that involve a number of risks and uncertainties.
Forward-looking statements include all statements that are predictive
in nature or depend on future events or conditions. Forward-looking
statements are typically identified by the words "believes,"
"expects," "anticipates," "estimates," "intends," "plans" or similar
expressions. Statements regarding the operations, business, financial
condition, priorities, ongoing objectives, strategies and outlook of
the Company, other than statements of historical fact, are
forward-looking statements. Specifically, this press release contains
forward-looking statements regarding the anticipated success of the
joint venture; and the Company's expectations regarding general
business and economic conditions. Forward-looking statements are not
guarantees of future performance. They involve known and unknown
risks and uncertainties relating to future events and conditions
including, but not limited to, the evolving global financial crisis
and its impact on the world economy and capital markets; the impact
of competition; consumer confidence and spending preferences; general
economic and geopolitical conditions; currency exchange rates;
interest rates and credit availability; technological change; changes
in government regulations; risks associated with operating and
product hazards; and CCL's ability to attract and retain qualified
employees. Do not unduly rely on forward-looking statements as the
Company's actual results could differ materially from those
anticipated in these forward-looking statements. Forward-looking
statements are also based on a number of assumptions, which may prove
to be incorrect, including, but not limited to, assumptions about the
following: global economic recovery and higher consumer spending;
improved customer demand for the Company's products; continued
historical growth trends, market growth in specific segments and
entering into new segments; the Company's ability to provide a wide
range of products to multinational customers on a global basis; the
benefits of the Company's focused strategies and operational
approach; the achievement of the Company's plans for improved
efficiency and lower costs, including stable aluminum costs; the
availability of cash and credit; fluctuations of currency exchange
rates; the Company's continued relations with its customers; and
general business and economic conditions.
Should one or more risks materialize or should any assumptions prove
incorrect, then actual results could vary materially from those
expressed or implied in the forward-looking statements. Further
details on key risks can be found in the MD&A section of CCL's 2012
Annual Report, particularly under Section 4: "Risks and
Uncertainties." CCL's annual and quarterly reports can be found
online at www.cclind.com and www.sedar.com or are available upon
request. Except as otherwise indicated, forward-looking statements do
not take into account the effect that transactions or non-recurring
or other special items announced or occurring after the statements
are made may have on CCL's business. Such statements do not, unless
otherwise specified by the Company, reflect the impact of
dispositions, sales of assets, monetizations, mergers, acquisitions,
other business combinations or transactions, asset write-downs or
other charges announced or occurring after forward-looking statements
are made. The financial impact of these transactions and
non-recurring and other special items can be complex and depends on
the facts particular to each of them and therefore cannot be
described in a meaningful way in advance of knowing specific facts.
The forward-looking statements are provided as of the date of this
press release and the Company does not assume any obligation to
update or revise the forward-looking statements to reflect new events
or circumstances, except as required by law.
For more details on CCL, visit our website - www.cclind.com.
For more details on Taisei Kako, visit their website -
CCL Industries Inc.
Senior Vice President and Chief Financial Officer
CCL Industries Inc.
Geoffrey T. Martin
President and Chief Executive Officer
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