PSi to Invest $35 Million in Operations
Plastic Suppliers, Inc. (Psi) announced today new financing facilities of $35 million, including funding for capital expansion of $23 million to increase capacity in 2018 and 2019 in response to growing demand for its EarthFirst sustainable packaging and label film businesses. Funding for the expansion comes from two facilities: an $8 million facility to expand and add manufacturing to its Ghent, Belgium, site and a $27 million facility to fund growth and add additional production capacity to its Columbus, Ohio, manufacturing facilities.
Last October, PSi announced the introduction of a new, patented, ultra-lightweight film, EarthFirst UL made from sugar cane, corn and tapioca roots. The company plans to add two new, high-speed production lines and significantly increase the capacity of a third line over the next 18 months. The new film replaces legacy petrochemical-based films used today in flexible packaging applications. It not only reduces the amount of film used in flexible packaging by as much as 40 percent, but it is also less expensive and has the lowest carbon footprint of any film available today.
“EarthFirst UL is a big win for consumers, municipalities, retailers, brand owners and packaging converters alike,” says George Thomas, CEO of PSI. “It reduces packaging volume entering the waste stream, lowers packaging-to-product ratios, makes the entire supply chain more cost effective and is compostable. We have a pipeline of new sustainable products that build on this technical platform. The capital will be used to expand our capabilities, enhance our quality and R&D processes, and meet the growing demand for innovative and sustainable packaging in the future.”
KeyBank will provide funding for the Columbus expansion and growth projects.
In addition to the new equipment, the company will invest over $750,000 for SQF certification by mid-year. SQF certification assures food retailers, brand owners, food processors and packaging converters that food, including the materials used to make packaging, have been produced, processed and handled according to the highest standards.