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Polyplex breaks ground on new facility

Polyplex Americas has announced the groundbreaking for a new manufacturing facility to be located in Decatur, Alabama, its first in North America.  Over the next 3 years, the Alabama facility will represent Polyplex’s largest capital investment in any single location.

While the last several decades has seen a steady move of manufacturing to the developing countries, Polyplex has taken a bold and contrarian view with this green field expansion in the U.S. The company believes that this state-of-the-art facility will provide its existing and new customers with a reliable on-shore supplier.  The combination of increased automation, higher productivity, logistics advantages and incentives provided by the State and local entities will help offset the higher capital and manpower costs anticipated with locating in the U.S.

Just 15 miles South of Huntsville, AL, Morgan County is an ideal location for the Company’s new venture, offering excellent industrial infrastructure, trained manpower, availability of key raw materials and proximity to a majority of the Company’s North American customers.

North America has always been a strategic market for Polyplex representing about 18% of its global market share. Many of the Company’s competitors suffer from aging production lines and historically high costs, leaving a gap in domestically-manufactured flexible packaging and industrial film products, which is currently being met by imports. Polyplex is ideally poised to fill this gap through on shore manufacturing with this new, modern, high speed, wide-width plant in Alabama.The Company will also benefit from the accessibility to markets from this central location. 

The Company plans to build the facility in phases, with Phase I including a high speed 8.7 meter wide thin gauge Polyester film line, with an annual capacity of 30,000 MT and a feedstock resin plant of 60,000 MT. The Company expects to invest $110 million for Phase I and create 100 jobs. The plant is expected to be operational by the third quarter of, 2012. The Company anticipates expanding this facility within a few years with the construction of another PET film line at an investment of $75 million, creating an additional 50 jobs.

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