MOSCOW (MRC) -- Intertape Polymer Group Inc. announced it has successfully commissioned its second water-activated tapes line at the Midland, North Carolina manufacturing facility on time and on budget, said the producer.
With the commissioning, the second line is producing commercial tapes at scale. Water-activated tapes are primarily used in the e-commerce market for carton sealing which can help reduce both pilferage and workforce injury from repetitive motion as well as provide the option for attractive prints on the tape. All amounts in this press release are denominated in US dollars.
"The e-commerce market is the fastest growing segment of our business. Our expansion at Midland enables us to match production with the growth in demand we are experiencing now and anticipate in the future," said Greg Yull, President and CEO of IPG. “The second line leverages the original investment at the facility, which is on track to meeting our after tax internal rate of return threshold of 15%. As such, we anticipate a step function improvement in the return from the second line once it's operating at optimal production. As a result, the second line is an important element of our two-year capital investment plan in which we targeted $80 to $90 million in deployed capital in fiscal 2017 and 2018. Given the growth in e-commerce as a proportion of the retail market, the expansion at Midland, together with our acquisition of protective packaging solutions, strengthens our product bundle for our direct accounts that are leaders in the e-commerce market."
IPG completed construction of the Midland facility in 2017 and commissioned the first line in the fourth quarter of 2017 for total invested capital of approximately USD48 million. The second line, which is a sister line to the first, doubles the capacity of the facility and was installed for total invested capital of $13.4 million with no new construction required. IPG invested in additional water-activated tapes capacity in anticipation of demand. The first line is at capacity so the second line provides new capacity for growth. The footprint of the site and the design of the facility also allow for additional expansion, if necessary, however expansion of the facility itself may be required. In addition to the Midland facility, IPG also produces water-activated tapes at its Menasha, Wisconsin, facility.
Intertape Polymer Group Inc. is a recognized leader in the development, manufacture and sale of a variety of paper- and film-based pressure sensitive and water-activated tapes, polyethylene and specialized polyolefin films, protective packaging, woven coated fabrics and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota, Florida, IPG employs approximately 3,500 employees with operations in 29 locations, including 22 manufacturing facilities in North America, two in Asia and one in Europe.
MRC