Sonoco to invest $15 million in Ohio packaging plantSonoco to invest $15 million in Ohio packaging plant
Sonoco announced that it will build a 120,000-plus square-foot plant in Ohio, including PET injection stretch blowmolding and injection molding machines, to produce packaging and components for personal care products. Sonoco's Rigid Paper and Plastics division will develop the new rigid plastic container operation at its Beauty and Home Care campus in New Albany, OH, with the expansion expected to be operational by the end of the second quarter of 2012.
August 10, 2011
Total building and equipment costs are projected to be approximately $15 million, with the site to employ approximately 60 workers. Sonoco Plastics also operates a food-grade, blowmolding and injection molding plant in Columbus, OH, which was expanded in 2011.
This newest plant is being developed to blowmold containers and injection mold components for Mast Global personal-care products. Mast is the sourcing and logistics division of Limited Brands, which represents premium lines like Victoria's Secret, Bath and Body Works, Pink, LaSenza, and Henri Bendel. Initially, Sonoco's new plant will produce products for Limited Brands' Bath and Body Works stores.
Sonoco has 28 plastics operations spread across the U.S., Canada, Mexico, Ireland, the Netherlands, and Germany. Its parent company is a $4.1 billion global manufacturer of industrial and consumer products and provider of packaging services, with more than 300 operations in 34 countries.
In its second quarter 2011 earnings report, Sonoco said its plastics segment sales were up year over year from $392 million to $451 million. Segment operating profit, however, was down from $42.1 million to $35.0 million. Sonoco attributed the 15% increase in sales for the second quarter to its acquisition of thermoformed tray manufacturer Associated Packaging Technologies Inc. The company also noted that volume growth in flexible packaging and rigid plastic containers was partially offset by declines in rigid paper containers and closures.
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