Wednesday, April 13, 2011

Uflex to set up its first manufacturing facility in the USA with an investment of $ 180 mn

His Excellency Steven L. Beshear, the Hon'ble Governor of Commonwealth of Kentucky and Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India's largest flexible packaging company, have formalized the expansion plans of the company to launch a PET film (polyester) plant in Kentucky, USA. To celebrate the announcement for investment and expansion, Uflex, organized a gala dinner, at Taj Mansingh Hotel, New Delhi, on 11th April, 2011. His Excellency Steven L. Beshear, the Hon'ble Governor of Commonwealth of Kentucky, was the Guest of Honor.

Uflex Ltd. will be investing approx.USD 180 million in phases in the project. This will be the first Greenfield investment to be made in Kentucky by an Indian company, as also Uflex's first manufacturing facility in the USA.

The new manufacturing plant is part of Uflex's strategy to gain competitive advantage of increased proximity to the markets globally and bring broad portfolio of value added products to its clients at competitive price points.

Mr. Ashok Chaturvedi, Chairman & Managing Director, Uflex Ltd., said, "It is crucially 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. We are so pleased with the support that we have received thus far in the US, and are greatly looking forward to bringing a richer Uflex experience to our valued customers."

Speaking on the occasion, His Excellency Steven L. Beshear, the Hon?ble Governor of Commonwealth of Kentucky, said, "I would like to congratulate Uflex for investing and manufacturing in the United States as part of its expansion plans. Projects of this magnitude provide hundreds of jobs and invest millions of dollars in our state".

UFLEX is undertaking various green and brown field expansion projects adding manufacturing lines for new product categories across facilities in Egypt, Mexico and India with aggregate investments of $250 million over the current Financial year 2012.

Apart from the venture in U.S., Uflex recently initiated the setting up of a new plant for manufacturing of 30,000 MTs of polyester film at Poland. The company will set up the plant in Wrzesnia in Poland with an investment of $80 million (around Rs 360 crore), which is expected to be operationalised by June 2012.

With plans of new manufacturing lines and corresponding investments UFLEX is all set to achieve the next milestone of touching the $1 billion revenue mark by FY 2012, the first company in the flexible packaging sector in India to achieve this milestone.

Uflex had registered an exponential growth of 423% increase in its consolidated net profit for the quarter ended December 31, 2010 at Rs. 251 crore as against Rs. 48 crore for the same period last year, maintaining a consistent record of highest growth by any company in the sector so far. The firm's consolidated revenue for the December quarter of 2010 stood at Rs. 1022 crore as against Rs. 595 crore for the same quarter last year, up 72%.

For the nine months period ended December 31, 2010, UFlex recorded net profit of Rs. 515 crore against Rs. 144 crore in the corresponding period last year, a growth of 258%. Net revenue of the company for the nine months ended Dec.. 31, 2010 stood at Rs. 2573 crore compared Rs. 1713 crore in the same period in previous fiscal, up by 50%.

Uflex's strong manufacturing base in India, Mexico, Dubai and Egypt caters to global markets spanning USA, Canada, South America, UK, Europe, Russia, CIS countries, South Africa and other African countries, the Middle East and the South Asian Countries.

Uflex is the only integrated unit of its kind in the world with flexible packaging at its core. It has vast capacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography, Metalization & PVDC coating, making Gravure Printing Cylinders & Flexo Printing plates, Gravure Printing, Lamination and Pouch formation.

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