Sonoco to Invest $20 Million for New Malaysian Composite Can Plant

Sonoco will have the capability of producing all components for finished composite cans.

April 17, 2014 -- Sonoco announced that it will invest $20 million to build a state-of-the-art, high-speed composite can production facility in near Kuala Lampur, Malaysia, which will produce packaging for snacks. In addition, the Company is spending more than $5 million to create the Sonoco Innovative Packaging Solutions™ (IPS™) Studio at its Hartsville, South Carolina manufacturing and headquarters complex.

Both projects were announced to shareholders on April 16 at the company's annual meeting.

Jack Sanders, president and chief executive officer, told shareholders, "Continued growth for packaged snacks in Southeast Asia requires that we build our third composite can plant in Malaysia. The new facility will be located on our customer's new manufacturing complex and will more than triple our current can production capacity in Malaysia."

Sonoco will add three high-speed composite can lines along with two metal end presses. In addition, an extrusion laminator is expected to be installed at the company's flexible packaging facility in Kajang, Selangor Darul Eshan, Malaysia, to produce can liners.

The first can line is expected to be installed in the third quarter of 2014 and begin commercial production in the first quarter of 2015.

All three lines, along with the metal end presses and the extrusion laminator are expected to be operational by the end of 2015.

When in full production the new Sonoco operation should employ approximately 110 workers.

"In addition to producing all components for the finished composite cans, we will provide and run sophisticated depalletizing equipment at our customer's production facility," Sander said. "This is the first time that we have provided an extended supply chain solution for a composite can customer."

Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging and packaging supply chain services. To learn more, please visit:

SOURCE: Sonoco