Cascades Sonoco invests $16 million to expand Alabama operations

SEATTLE (Scrap Monster): Cascades-Sonoco-a joint venture between Cascades Inc. and Sonoco Products has announced fresh investment of $16 million to expand its Birmingham, Alabama operations. The proposed investment in water-based coating technology is expected to focus on expansion of the plant and installation of new equipment. The site work is expected to commence soon and end by second quarter of 2018. Once fully operational, the plant’s capability will be lifted to 40,000-50,000 tons of sustainable coated materials per annum.

According to Cascades Sonoco, the investment will further enhance the proprietary FlexShield, FluteSHIELD and SurfSHIELD coating technologies. These revolutionary coating technologies have already started replacing old technologies such as the LDPE coating used in folding cartons and the wax replacement technology employed by corrugated industry. The investment will help the company to expand its range of water-based products into fast-growing markets such as southeastern US, said Mr. Rodger D. Fuller, Senior Vice President of Paper/Engineered Carriers U.S./Canada and Display & Packaging at Sonoco Products Company. Further, it will help the company to maintain its position as market leader in protective roll packaging, he added.

Luc Langevin, president and chief operating officer of Cascades Specialty Products Group stated that the strategic investment will help the company to expand its product offerings into new untapped markets. He also thanked Birmingham Business Alliance (BBA) and all its other partners including Alabama Department of Commerce, AIDT Training & Recruitment Center and Alabama Power Co., for their relentless support. Meantime, Jefferson County Commissioner David Carrington noted that the County is extremely pleased that Cascades Sonoco has decided to make multi-million dollar investment, which itself testifies the favorable business climate existing in the region. He further hoped that the great project, initially identified through BBA’s Business Retention and Expansion program, will result in creation of around 20 additional quality jobs in the region.

Earlier in July 2016, Cascades-Sonoco had announced development of FlexSHIELD- a new water-based barrier coating that could be used as a substitute for polyethylene coatings in take-out containers. The new aqueous-based barrier coating was mainly designed for use in folding carton applications. Also, the company had stated that folded containers made from board with a FlexSHIELD coating are ideal for a wide range of applications: food service trays and takeout, bakery products or any non-food product.

Cascades Inc. produces, converts and markets packaging and tissue products that are composed mainly of recycled fibres. It is one of the major converters of corrugated packaging products, tissue papers and specialty products in North America and the largest collector of recyclable materials in Canada. The Company employs 11,000 women and men, who work in close to 90 production units in North America and Europe.

Sonoco is a global provider of consumer packaging, industrial products, protective solutions and display and packaging services. Headquartered in Hartsville, S.C., it has nearly 330 operations spread across 34 nations. Sonoco develops and deliver innovative packaging solutions that enhance and optimize their business and brands.

Established in 1992, Cascades-Sonoco is a freestanding joint venture between Cascades Inc. and Sonoco Products Ltd.