Dutch packaging producer Honicel Worldwide to build its first facility in India, will make 'honeycomb' core products in JV with India-based Ethiraj Timber, plans other packaging plants in India

LOS ANGELES , March 27, 2012 () –

Dutch packaging producer Honicel Worldwide BV plans to build its first manufacturing plant in India in a 60:40 partnership with Chennai, India-based Ethiraj Timber Pvt. Ltd., reported The Hindu Business Line on March 7.

The plant, which will be located in Chennai, will produce up to 9,000 tonnes a year of the company’s “honeycomb” packaging products in its first phase, said Giridhara Raj, director of Honicel India Pvt. Ltd.

The company also is planning other packaging manufacturing facilities at the same location in Chennai, as well as in Bangalore and Hyderabad, both in India, to “be close to our customers,” said Raj, The Hindu Business Line reported.

Most of the new Chennai plant’s output -- which will include Constructive and packaging products -- will be sold in the domestic market, said Henk Krabben, president and CEO of Honicel.

The company’s Constructive brand is used for “in fills” to replace sawdust in plywood, medium-density fiberboard and other solid woods and corrugated paperboard, he said, reported The Hindu Business Line.

Sixty percent of the production from the Chennai facility will be sold for container packing to pharmaceutical, food and automobile customers. The remaining 40% is geared toward manufacturers of inside doors and furniture, said Raj.

Honicel’s pallets, which are made from recovered paper, are greener alternatives to plywood, as they are recyclable, renewable and biodegradable. In addition, they cost about one-third as much as conventional construction and packaging materials, said Krabben.

Honicel India is targeting a turnover of 3 billion rupees (US$59.1 million) in the first year of operation, The Hindu Business Line reported.

The primary source of this article is The Hindu Business Line, Chennai, India, on March 7, 2012.


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