CCL Industries forges partnership to expand into Asian packaging marketing

By Simon Pitman

- Last updated on GMT

Related tags Asia Southeast asia

CCL industries has signed an agreement to partner with Japanese packaging company Taisei Kako that will see the two companies build a plastic tube manufacturing and decorating plant in Bangkok, Thailand.

The joint venture will see a combined investment of $55m injected into the project to get it off the ground, which will include equipment transferred from existing CCL and Taisei Kako tube manufacturing operations.

Each partner will have a 50 percent share in the venture, with CCL’s interest in the project being represented by Jim Anzai, who is vice president and managing director of the company’s Asian operations.

Thailand is central to the Asia Pacific market

Locating the manufacturing facility in Thailand means that the plant is well placed to serve growth in demand for packaging all over the Asia Pacific region, including the immediate South East Asian market, together with the Indian and Chinese markets.

Geoffrey Martin, president and CEO of Canada-based CCL Industries said that partnership with Taisei Kako had given the project a considerable technological advantage, thanks to the Japanese company’s advanced state of manufacturing equipment and standards.

"The new operation will focus on selling tubes alongside labels to existing CCL customers in the home and personal care sector in South East Asia, while exporting products to customers of Taisei Kako in the same sector in Japan,”​ said Martin.

“We believe this is an excellent opportunity for CCL to expand our successful tube business in the most important emerging market for these products in the world.”

CCL hopes to tap into Taisei Kako's Asian market capabilities

While CCL Industries has a vast manufacturing footprint that includes 74 plants all over the world, with a focus that has traditionally centered on consumer and healthcare packaging, including aerosols, bottles and extruded plastic tubes.

Taisei Kako also focuses on plastic packaging for the healthcare and beauty segments, but it is a smaller operation, having nine plants that are mainly located in Asia.

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