Frantschach has completed the acquisition of an industrial sack plant near Chicago, USA. The move is designed to consolidate the firm's position across the Atlantic and open up new opportunities for the export business in the USA.
The industrial sack converting plant is being bought from the Korsnäs Group in Romeoville, Illinois. At the present time the plant produces 35 million paper sacks annually and its yearly sales revenue is $ 7 million. The plant has 50 employees. Frantschach says that it wants to further increase production.
The group has steadily been increasing its exports to the USA in recent years. But the acquisition of this plant means that for the first time, the Frantschach Group can begin production in North America.
The newly-formed company tha will run the American facility has been named Mondi Packaging USA. A team of experienced Frantschach staff members from Europe will implement group production procedures and modern technology at the newly acquired site.
"The Frantschach Group, the world's largest producer of industrial sacks, has long been interested in supplying the North American market, along with those in Europe, the Middle East and Asia," said Frantschach chief executive Dr. Veit Sorger. "After having expanded our export business in the USA for a number of years, we are now ready to start production locally. This will make it possible for us to do business in the USA without being subject to exchange rate risks."
The Frantschach Group is a global provider of packaging solutions and has a reputation as one of the world's leading producers of high quality sack papers and industrial sacks. The group operates 66 production sites in 30 countries