Photo by Verstraete IML Koen Verstraete, Managing Director of Verstraete IML with Mike Henry, EVP Constantia Flexibles’ Labels division.

Belgium-based Verstraete IML, an in-mould labels company, has announced it has started preparing for the construction work of a new production site in Clarksville, Tennessee, US, together with its parent company Constantia Flexibles.

Over a period of three years, Verstraete IML says it expects to invest €18m in its new US plant and create around 55 new jobs. The company states its US facility will begin production in the second half of 2017.

Koen Verstraete, Managing Director of Verstraete IML said: “The decision to expand our production capacity with an international site is a huge step for our company. Going to North America will not only strengthen our position as global leader, but also gives us direct access to North America – the IML market with the best growth potential.”

Mike Henry, EVP Constantia Flexibles’ Labels division, talked about how the parent company will assist: “The new site is located in Clarksville, Tennessee, where Constantia Flexibles already has a paper and pressure sensitive labels plant serving the American beverage and food market. This has many benefits. Constantia has the management, legal and technical experience we need to operate successfully and rapidly in the North American region.”

Verstraete IML highlights that its two existing Belgium-based plants in Maldegem and Ursel will continue to operate at the same capacity levels.The company says that currently 65% of the labels are produced for the European market, whilst 35% are exported to Asia, the Middle East, Russia & CIS and North and South America.

Austria-based Constantia Flexibles currently has 10,000 employees in over 55 companies in 23 countries.