30 August 2013 09:41 [Source: ICB]
Global film manufacturer Innovia Films, a division of Innovia Group, announced a £20m (€24m, $32m) investment package for the installation of additional biaxially oriented polypropylene (BOPP) film capacity.
The investment will also be used to build a state-of-the-art gas turbine at its UK site in Wigton, which will help the company meet growing demand.
The additional BOPP capacity would help meet the increasing worldwide demand for Innovia's specialty grades, and is expected to increase the company's global output by a further 10%, it said.
Work will start immediately and it is planned that the new capacity will be fully commissioned in 2015.
The decision to invest in a gas turbine was made a few months ago and preparation work on the Wigton site has already begun.
PP demand in Europe has been steady since it improved in May, following several months of poor volumes, and August prices have risen by €50/tonne, in line with the rise in the August ethylene contract. There was already some talk of further increases in September as upstream players expected an upturn in September propylene prices.
Innovia has production facilities in the UK, US, Belgium and Australia.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Sample issue >>
My Account/Renew >>
Register for online access >>
|ICIS Top 100 Chemical Companies|
|Download the listing here >>|
Asian Chemical Connections