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Pregis invests $17m to expand production capacity of Michigan facility

PKBR Staff Writer Published 06 May 2016

Packaging materials company Pregis plans to invest $17m in its Grand Rapids facility in Michigan to expand its production capacity and to install new flexible packaging manufacturing and converting equipment.

Currently, the 90,000 ft2 facility includes four modern multilayer blown film extrusion lines.

Under the expansion plans, a five-layer Windmoeller & Hoelscher blown film line can be installed, raising the roof of the location.

This new line is expected to become operational by mid-summer, reported multichannelmerchant.com.

The company plans to undertake structural renovations along with increased floor space and production capacity, introduction of additional extrusion lines can be based on a rise in demand.

Pregis Films president and CEO Kevin Baudhuin said: "We are seeing demand from industrial, ecommerce and other segments -- such as flexible packaging -- requiring higher quality materials.

"Investing in this facility will help us meet market segment expectations for package performance and provide vertical integration for some of Pregis' other products."

Pregis also plans to set up a separate 70,000 ft2 converting facility to deploy and convert additional equipment used to produce flexible packaging. It will use upgraded analytical testing equipment to assist customers to meet specific material performance requirements, the publication reported.

To meet future capacity requirements, Pregis is also spending on storage silos and resin handling.

Currently, the Grand Rapids facility employs 80 people and plans to add 50 employees once the equipment becomes operational.