Canada-based CCL Industries, a global manufacturer of packaging and labelling, has announced the completion of its European joint venture with Pachem, a company which specialises in state-of-the-art pressure-sensitive shrink sleeve and in-mould labels. The intent to form this joint venture was originally announced on 18 December 2002.
The new company will operate as CCL-Pachem and be headquartered at Pachem's existing facility in Hohenems, Austria. Its focus will be on providing global consumer companies with innovative package decorating solutions for their premium European brands in the food and beverage categories.
In 2002, Pachem's sales were C$37 million (€23.9m). It is anticipated that the joint venture will be accretive to earnings in 2004. CCL will continue to operate its 100 per cent owned, European label company that focuses on the personal care, pharmaceutical and chemical markets.
Guenther Birkner, former CEO of Pachem and CEO of the new CCL-Pachem joint venture said: "This new partnership with a strategic player like CCL gives us the financial strength and global customer reach to be a leader in these rapidly developing European markets."
CCL-Pachem will operate from three state-of-the-art plants in Hohenems, Austria, Rhyl, UK and the CCL Label Rotogravure operation in Avelin, near Lille in France. Technology from the European operations will also be transferred to CCL Label's wholly owned subsidiaries that serve the North and Latin American and Asian markets.
CCL Industries provides a range of packaging solutions, including speciality aluminium and plastics packaging and innovative product labelling to some of the world's largest producers of consumer brands.
With headquarters in Toronto, Canada, CCL employs 7,000 people and operates 35 production facilities in North and Central America and Europe.