Monday, June 25, 2018

News: United Caps to build £19m Rotherham factory

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United Caps, an international manufacturer of caps and closures, has announced that it will invest some €20m in a new production facility in Rotherham.

Based in Luxembourg and formerly known as Procap, the company is a European leader in the development, production and sale of plastic caps and closures. A preferred partner to the world's leading companies, United Caps produces custom designed specialty closures for the likes of Arla, Danone, Unilever, L'Oréal and Pfizer.

In an update on growth initiatives for 2018 and beyond, company bosses confirmed that it plans to extend its operations in the UK with a new United Caps plant in Dinnington, Rotherham.

The company said: "As part of UNITED CAPS' "Close to You" strategy, the company is also planning a new facility in Dinnington close to Sheffield in the UK.

"The initial facility will be 5,000 square meters [54,000 sq ft], with an option to expand to 20,000 square meters [215,000 sq ft] as business growth demands.

"Production is expected to begin at the end of 2019 and will initially focus on beverage and dairy closures, with options to add additional segments as needed.

"This project represents an estimated €20 million investment including the first phase of machinery and is expected to increase group turnover by 15% in phase one."

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United Caps currently has seven production plants across Europe, in Belgium, France, Germany, Hungary, Ireland, Luxembourg (pictured) and Spain. It employs around 529 staff.

The investment in Rotherham is being backed by a £1.5m direct grant from the Sheffield City Region Combined Authority. Documents show that funding from the Sheffield City Region Business Investment Fund has been approved which will be used for the construction and fit out of a production plant that will create 40 new jobs.

Based around the reclaimed Dinnington colliery, the area in the south of the borough is a proven business location, home to the likes of Macalloy, Johnston Press and Quartzelec. Local spec developer EV Waddington is active in the area and 31 East is being brought forward by experts at St Paul's Developments. With Enterprise Zone status, the 43 acre site on Todwick Road is adjacent to the existing 45 acre Dinnington Business Park.

United Caps, which had net sales of €137m in 2017, has made a number of acquisitions in recent years and is opening a new manufacturing plant in Malaysia at the end of 2018. The firm also invests in R&D such as developing greener enclosures using plant-based plastics rather than petroleum-based plastic.

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In addition to investing in production, the company has extended its R&D centre located in Messia, France to develop both standard and bespoke products more quickly. About 50% of United Caps' products are created through customer collaboration with the design labs to develop bespoke closures tuned to their specific requirements. In one recent example, Nestlé was seeking a closure for its Nescafé Gold coffee that would support the high-quality image of Nescafé and stand out on the shelf.

Nestlé was aiming for a classy brushed metal look for its new packaging. This required a 100% metallic material to be wrapped around the skirt of a closure, something that had never been done before. United Caps was able to overcome several challenges that were deemed to be impossible, reaching full production in just two years.

United Caps website

Images: United Caps

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