Cascades Inc (TSE:CAS) Sonoco invests in new coating technology for recyclable and compostable take-out containers

Packaging manufacturers Cascades Inc (TSE:CAS) and Sonoco Products Company announced on Friday that their joint venture is investing millions of dollars in new water-based coating technology.

Cascades Sonoco will invest approximately US$16m in the expansion of its existing facility in Birmingham, Alabama to produce coated paper and paperboard substrates using the FlexShield, FluteSHIELD and SurfSHIELD coatings.

These new functional and barrier coatings are designed to replace the standard LDPE coating used in take-out container folding carton applications, as well as wax replacement technology for the corrugated industry. According to Cascades Sonoco, they allow the creation of containers that are recyclable, repulpable and compostable.

"This investment represents a significant geographic expansion for water-based products by Cascades Sonoco, especially in the fast-growing Southeastern United States ," commented Rodger Fuller, senior vice-president of Sonoco's Paper & Engineered Carriers, U.S. & Canada, and Display & Packaging. "With this exciting addition to its product portfolio, Cascades Sonoco remains dedicated to maintain its market leadership position in protective roll packaging for the paper industry."

Luc Langevin, president and chief operating officer of Cascades Specialty Products Group, said that the support of the Birmingham Business Alliance and the company's partners influenced its decision to invest in the region.

"This strategic investment certainly helps Cascades Sonoco expand its product offerings into high-growth consumer-oriented markets," he added.

Expansion of the Birmingham facility and installation of the new equipment is planned to begin early this year, with start-up expected in the second quarter of 2018.

Once at full capacity, the new water-based coating line will have the capacity to produce 40,000 to 50,000 tons of sustainable coated materials annually.

Cascades Inc. (TSE:CAS) is a Canadian company that produces, converts and markets packaging and tissue products consisting of recycled fibers. The Company operates through four segments: Containerboard, Boxboard Europe, Specialty Products (which constitutes the Company's Packaging Products) and Tissue Papers. More from Reuters »

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