CCL Industries Inc.

CCL Industries Inc.

January 02, 2008 17:18 ET

CCL Industries Forms Joint Venture Label Business in Russia

TORONTO, ONTARIO--(Marketwire - Jan. 2, 2008) - CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B), a world leader in specialty packaging and labelling solutions for the consumer products and healthcare markets, announced today that it has created a newly named label company, CCL-Kontur, that will service the territories of Russia and other CIS countries.

The new company is jointly owned by CCL Label and Ilgar Mamedov, a well-known entrepreneur in the Russian label industry. Mr. Mamedov has contributed the assets of two label businesses into the new company: Kontur Plus based in a new state-of-the-art facility in Moscow, and Asterix, based in St. Petersburg. CCL-Kontur had sales of approximately $26 million in 2007. CCL is investing approximately $16 million to acquire a 50% interest in these assets and to provide funding for additional capacity related investments.

Commenting on the announcement, Geoffrey Martin, President and Chief Operating Officer of CCL Industries said, "We have known Mr. Mamedov and his management team for some time and have high regard for them and their knowledge of both the Russian label industry and the business climate of the country in general. We consider them excellent partners to introduce CCL Label products and technologies into one of the fastest growing markets in the world."

Mr. Mamedov added, "CCL-Kontur is well placed to supply the existing global customers CCL Label does business with, many of whom are actively involved in the Russian consumer products market. We are also delighted to have access to the know-how of the largest label company in the world."

Donald Lang, Vice-Chairman and CEO of CCL Industries said, "Russia is another important step in establishing a global footprint for our company. We are very fortunate to have found such a good partner who has a proven track record in other successful joint ventures and distribution businesses with both North American and European companies and we are excited about our future growth prospects together."

With headquarters in Toronto, Canada, CCL Industries employs approximately 5,200 people and now operates 51 production facilities in North America, Europe, Latin America and Asia. CCL manufactures pressure sensitive, shrink-sleeve and in mould labels, aluminium containers and plastic tubes for leading global companies in the home and personal care, healthcare and specialty food and beverage markets.

Statements contained in this Press Release, other than statements of historical facts, are forward-looking statements subject to a number of uncertainties that could cause actual events or results to differ materially from some statements made.

Contact Information

  • CCL Industries Inc.
    Steve Lancaster
    Executive Vice President and Chief Financial Officer
    (416) 756-8517