The firm will install a rotary die-cut machine, slitter and rotogravure printing press, investing $13.5m in equipment at the facility and will add an estimated 15 jobs to the area.
“The city of Waco has been home to Sonoco for nearly 10 years, and we’re excited to further invest in our facility here, which has been a part of the community since 1986,” said Rick Brzezinski, plant manager.
On the investment trail
The investment forms part of plans the company revealed earlier this year, including buying a triplex laminator and rotogravure press from Bobst Corporation, starting operations in Q2 2016.
The laminator will be installed at its Ohio plant and the 11-color rotogravure press in Texas.
Scott Felton, McLennan County Judge, said the firm has been a vital part of the McLennan County business community for a number of years.
“I am very pleased the Waco facility remains strong and these new investments and additions will ensure its strength continues in the future.”
Sonoco produces flexible packaging, including easy open/reseal packaging systems, bags and pouches.
Technologies include roto and flexo printing, high-barrier laminations, precision scoring, integrated open and reclose features, specialty coatings and films, prototyping and graphics management.
Price increases
In other news, Sonoco said it will raise the price for all grades of uncoated recycled paperboard (URB) products by $45 per ton, effective with shipments in the US and Canada from August 31.
“The price increase is driven by recent increases in costs for recovered paper, chemicals and other operating costs,” said Palace Stepps, director of sales and marketing for Sonoco’s North America paper business.
Sonoco produces more than 1 million tons annually from 11 mills.
The firm also said it will raise the price for all paperboard tubes and cores by 6% to 8% effective with shipments in the US and Canada beginning September 14.
It is the largest producer of paper-based tubes and cores in North America. They are used in the paper, textiles, plastic films, tape and specialty industries.
“The price increase is necessary due to the recent increase in the price of our primary raw material, uncoated recycled paperboard (URB),” said Adam Wood, vice president, Global Tubes and Cores.
“This URB price increase, combined with continued rising operating and other raw material costs, have put pressures on Sonoco which we cannot absorb.”