Berry Plastics talks growth outside of the U.S.

Berry Plastics says that when the company started more than three decades ago, it had a goal of becoming a leading manufacturer of injection molding packaging in the U.S. That vision has been realized and exceeded and today, Berry Plastics is comprised of four divisions: engineered materials, flexible packaging, rigid closed top and rigid open top. 

And while the company is oftentimes seen as a North American packaging provider, the company is actually quite global. 

"It is true that the majority of Berry Plastics' facilities and customers are located in North America," Eva Schmitz, spokesperson for Berry Plastics, told PlasticsToday. "However, Berry Plastics currently has approximately 15 facilities outside of North America. Many of Berry Plastics' customers are establishing or have established facilities outside of North America."  

As such, the company recently announced plans to acquire Qingdao P&B Co., Ltd. (P&B), a Chinese-based rigid plastic packaging provider. Berry Plastics will own 75 percent of P&B, with a minority ownership position retained by Peter Song, who is the original founder of P&B and the current general manager of the business. Song will remain in the same position going forward. The company will conduct business under the name Qingdao Berry Plastics Limited.

P&B is an established packaging business with operations and headquarters in the Qingdao, China free-trade zone, where it operates a manufacturing facility. P&B utilizes thermoform, injection, and automated assembly manufacturing processes to produce products for multiple markets across China as well as globally, most predominately serving the food and personal care markets.

Schmitz said that Berry Plastics' four key strategic goals is to expand globally, by establishing a presence in geographic regions where there has been historical economic growth and where there are predictions for continued economic growth. The company sees much growth potential in the Asian markets, she said. Prior to this acquisition, the company has a small plant in India that supports its seal for Llfe business and a small injection molding facility in Malaysia.

"This acquisition is in direct alignment with our strategic objective of establishing a business presence in emerging global markets," said Jon Rich, chairman and CEO of Berry Plastics, in a news release. "Berry Plastics is a leader in the North American plastic packaging market, while P&B is a leader in China's packaging market. Through this joint venture, we will capitalize on our combined business strengths to bring an increased number of innovative products to the Chinese and Asian markets, allowing us to best serve our customers and create increased value for our shareholders."

Schmitz said that the company's international expansion initiatives will allow the company to serve its customers' needs on a global basis and establish relationships with new customers that may be specific to that geographic region.

"Going forward, Berry Plastics will continue to evaluate potential acquisitions in geographic regions where there has been historical economic growth and where there are predictions for continued economic growth, so that the company can best meet the global needs of its customers," she said.