CCL to Invest in New Plant to Produce Aluminum Slugs in Clinton, North Carolina

CCL Industries Inc., a world leader in specialty label and packaging solutions for global corporations, small businesses and consumers, announced today that it will invest in a new plant to produce aluminum slugs used in the impact extrusion process to make aerosol cans, tubes and bottles for consumer packaged goods companies.

The facility in Clinton, North Carolina, will be jointly owned by CCL and Rheinfelden Semis GmbH, a leading European producer of aluminum slugs based in Germany.

The partners will initially invest approximately $18 million financed by $4.5 million in equity between them and the balance in debt, to create the plant and to build up capacity to a planned 25,000 tons by 2018. The new business will trade as Rheinfelden Americas LLC and Mr. Bernard Ecker from Rheinfelden, Germany, will be its first Managing Director.

Geoffrey T. Martin, President and CEO of CCL Industries Inc. commented, "For many years the North American impact extrusion industry has relied on a single domestic supplier of aluminum slugs. This new venture will create a second source both for CCL Container and other players in the market. We are very pleased to have secured a strategic relationship with a leading player in Europe who already supplies a portion of our needs. Our role in the business will be to provide financial administration, a portion of the volume and manage our investment through the venture's Board. Our partner will be responsible for the technology to scale up the plant, manage operations and handle commercial relations with third party customers."

Alois J. Franke, CEO of Aluminum Rheinfelden Group in Germany, said, "The market for aluminum aerosol cans and slugs is characterized by a steady growth globally. We are happy to extend in partnership with CCL our production facilities to Clinton, North Carolina, serving the Americas with aluminum slugs. Aside from this Rheinfelden produces primary casting alloys and electrode paste."

Source: http://www.cclind.com/

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