Futamura to Invest $30 million in Innovia Films, the Last Cellophane Plant in the US

Japan-based Futamura Chemicals has contracted to purchase Tecumseh’s Innovia Films, the last cellophane plant in the US. Futamura will complete the purchase by June 30 and plans to invest $30 million in the next four years to increase its production capacity by 60% and add 30 additional jobs. This deal comes as a great relief for the US plant as its initial plan was not to get into cellophane production business. Futamura is in the business of making cellophane and is likely to close one of their facilities and move production of about 5,000 tonnes to the US plant. Innovia currently has 172 employees and about 30 positions will be added to handle the increase in production from 9,000 tonnes annually to about 14,000 tonnes. Most of the cellophane produced will be exported to the Asian market, a very stable market for cellophane tapes compared to the US market where most tapes are made of plastic. Futamura is of the opinion that it is easier to renovate and revive the already existing Tecumseh plant rather than to work on the company’s Japanese plant located in Ogaki. This is so because the facility in Japan is old and has the limitation of land, compared to Kansas where there is sufficient land.

Read Full News At: http://www.researz.com/futamura-invest-30-million-innovia-films-last-cellophane-plant-us

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