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Flexible packaging firm Uflex Ltd will be investing around $180 million in phases to set up a green-field plant in Kentucky, US.
The new manufacturing plant, to be operational by 2012, is part of Uflex's strategy to gain competitive advantage of increased proximity to the markets globally and bring in a broad portfolio of value-added products to its clients. The company is expecting to manufacture 30,000 MTPA of PET film from the new plant.
“It is important for us to be able to ensure wide availability of our products and it makes sense to manufacture products close to where our customers are. The global demand for flexible packaging films is rapidly increasing and we need to make investments to meet future demands. Producing PET film in Kentucky will result in shorter lead times for our customers,” Mr Ashok Chaturvedi, Chairman and Managing Director, Uflex told newspersons here.
The investment will be financed by a mix of debt as well as internal accruals and the company is looking to raise $48-50 million from two German banks, KfW and KBC.
Uflex manufactures flexible packaging solutions with a capacity of 25,000 TPA.
Mr Steven L. Beshear, Governor of Commonwealth of Kentucky, said, “Projects of this magnitude provide hundreds of jobs and invest millions of dollars in our state.”
Apart from the venture in US, Uflex recently initiated the setting up of a new plant for manufacturing of 30,000 MTs of polyester film at Poland with an investment of Rs 360 crore.
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