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Avery Installs New Coater to Expand Kunshan, China Plant

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Avery Dennison CorporationAVY has installed a new custom-built coater in its Kunshan plant to increase manufacturing capabilities for performance tapes in China. This move reflects the company's commitment to better serve its customers in the country.

The electronics, automotive and general industrial segments are growing fast in China. Demand for industrial tapes and adhesives solutions in the country is also rising. The new coater will manufacture a broad range of high performance industrial tapes and ensure faster delivery backed by a range of valuable services.

Installation of the new coater will expand the plant's size by 3,500 sq. meters. This high-speed, versatile custom-built coater can coat various coatweights and run solvent or emulsion adhesive tapes with a maximum width of 1.52 m per 60 inch.

Furthermore, the Kunshan plant expansion includes a new lab with test equipment that will enable Avery to develop new products and maintain the high quality and performance of its existing products. It also houses a manufacturing hall as well as new offices and labs on the first and second floors.

Avery intends to hire additional employees to accommodate the new production and testing capabilities. The company will begin taking orders for products manufactured on the coater from October onwards.

Avery's performance tapes products include coated tapes and adhesive transfer tapes that are sold for use in non-mechanical fastening, bonding and sealing systems in various industries. These tapes are sold to industrial original equipment manufacturers, converters, and disposable diaper producers worldwide through the Pressure-sensitive Materials (PSM) segment.

In the PSM segment, Avery's competitors are Flexcon Corporation, Inc., 3M Company MMM , Tesa-SE and Nitto Denko Corporation. The entry of further competitors is limited by technical knowledge and capital requirements and Avery believes that its technical expertise, relative size and scale of operations, ability to serve its customers with a broad line of quality products and service programs will assist in handling such situations.

Pasadena, CA-based Avery Dennison manufactures pressure-sensitive materials and tickets, tags, labels and other converted products. The company has over 200 manufacturing and distribution facilities in more than 60 countries.

Currently, Avery has a Zacks Rank #3 (Hold).

Some better-ranked industrial products sector stocks include AGCO Corporation AGCO and ACCO Brands Corporation ACCO , both carrying a Zacks Rank #2 (Buy).

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3M CO (MMM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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