CCL adds extrusion assets; closes Avery Massachusetts operations

"This new capability allows us to design proprietary, specialty films for new sleeve and pressure sensitive label applications while improving our supply chain performance for part of today's demand," he said. "It is an important strategic step as we seek to accelerate growth with global brand owners in the premium segment of this market. We remain the world's largest trade buyer of heat shrinkable films for label applications from our valued supply partners."

Advanced Packaging Films manufactures shrink sleeves, BOPS film, MOPS film, stretched PS film and co-extruded PS film for packaging.

Shut down of Avery Massachusetts operations

The company also announced that it plans to permanently close its Avery North American supply chain operations in Chicopee and Holliston, MA, commencing February 1, 2014, and completing before the end of next year.

CCL Industries President and CEO Geoffrey Martin said the operations will eventually be consolidated into existing Avery supply chain facilities located in the U.S., Canada and Mexico. About 250 people will be affected by the change.

"It is with great regret that we have to announce this news but it is very clear that our Avery business had been operating with significant excess capacity and infrastructure for some time prior to the change in ownership," he said in a news release.

In January, it was announced that Avery Dennison Corp. agreed to sell its office and consumer products (OCP) and designed and engineered solutions (DES) businesses to CCL.

CCL Industries employs approximately 9600 people and operates 87 production facilities in 25 countries on five continents with corporate offices in Toronto and Framingham, MA. CCL Label claims to be the world's largest converter of pressure sensitive and film materials for a wide range of decorative, instructional and functional applications for global customers in the consumer packaging, healthcare, automotive and consumer durables markets.