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22-773: Innovia Films , a division of CCL Industries , is an international manufacturer and supplier of biaxially-oriented polypropylene (BOPP) films for speciality packaging, labelling, tobacco overwrap and industrial products. It was once known as UCB Films. The UK plant is based in Wigton , Cumbria, the company is exclusively focused on speciality films, including biaxially oriented polypropylene (BOPP), used in many wrapping and labelling applications and for banknote production in Canada, Australia, Britain and other countries. Total annual film capacity worldwide currently stands at more than 218,000 tonnes. In 1926, Société Industrielle de la Cellophane (SIDAC)

44-403: A $ 14 billion business segment around 2022. In the semiconductor industry, this practice is called the foundry model . Contract manufacturing is specially prevalent in the electronics industry . There are many benefits as well as risks to contract manufacturing. Companies are finding many reasons why they should outsource their production to other companies. However, production outside of

66-536: A BOPP films producer in Plock, Poland who have both Tenter and Cast polypropylene production. They were also rebranded Innovia Films. The current production sites are located in: CCL Industries CCL was founded in 1951 as Connecticut Chemicals (Canada) Limited. In 1979, the name was changed to CCL Industries. It originally focused on custom manufacturing for the Canadian consumer products industry. Starting in

88-519: A British specialty films company, for $ 1.13 billion Canadian Dollars. In 2017, it joined the S&;P/TSX 60 . CCL provides labels and packaging products to various markets, including consumer product, healthcare, and industrial companies. Specific markets served include the home product, personal care , food & beverage, pharmaceutical, apparel, industrial chemical, automotive, and electronics markets. As of 2016, 5% of sales were in Canada, 46% were in

110-441: A European custom manufacturing joint venture with Portuguese company RAR , for $ 140 million. In 2013, it acquired Avery for $ 500 million from Avery Dennison , its biggest acquisition to that time. In 2015, it bought Worldmark, a British labelling company specializing in labels for the technology sector, for $ 255 million. In 2016, it acquired Checkpoint Systems for $ 422 million. In December 2016, CCL acquired Innovia Films Ltd,

132-419: A good business strategy . For large companies that are trying to extend into new markets, contract manufacturing may be a good choice. In an international context, establishing a foreign subsidiary as a contract manufacturer can have favorable tax benefits for the parent company, allowing them to reduce overall tax liabilities and increase profits, depending upon the activities of the contract manufacturer. This

154-474: A hiring firm will request quotes from multiple CMs. After the bidding process is complete, the hiring firm will select a source, and then, for the agreed-upon price, the CM acts as the hiring firm's factory, producing and shipping units of the design on behalf of the hiring firm. Job production is, in essence, manufacturing on a contract basis, and thus it forms a subset of the larger field of contract manufacturing. But

176-654: A new purpose built Research & Development Centre in Wigton, UK in 2002. In February 2013, the company bought the 50% share of Securency International it did not already own from the Reserve Bank of Australia using cash reserves . Securency and Note Printing Australia had faced a scandal involving bribery of officials to win currency printing contracts. In October 2004, a UK consortium led by Dennis Matthewman and financed by private equity company Candover Investments , bought UCB's polypropylene and cellulose films business. As

198-430: A significant part of the design and customization process if needed. Some turnkey suppliers specialize in one base component (e.g. memory chips ) or a base process (e.g. plastic molding). In a contract manufacturing business model, the hiring firm approaches the contract manufacturer with a design or formula. The contract manufacturer will quote the parts based on processes, labor, tooling, and material costs. Typically

220-908: A wide range of labelling products including expanded content, 2-ply, WashOff, Shrink Sleeves , RFID and promotional pieces. Container business contributes approximately 6% to CCL's total sales and is a manufacturer of aluminum cans and beverage bottles in North America. Contributing approximately 20% to CCL's total sales, Avery was acquired from Avery Dennison in 2013 and supplies media for use in digital printers. Acquired in 2016, Checkpoint contributes approximately 11% of CCL's total sales. It provides loss-prevention and inventory management labelling for clothing retailers. Acquired in December 2016, Innovia manufactures specialty films for packaging, labelling, graphic arts and industrial products. Contract manufacturer A contract manufacturer ( CM )

242-518: Is a manufacturer that contracts with a firm for components or products (in which case it is a turnkey supplier ). It is a form of outsourcing . A contract manufacturer performing packaging operations is called copacker or a contract packager . Brand name companies focus on product innovation , design and sales, while the manufacturing takes place in independent factories (the turnkey suppliers). Most turnkey suppliers specialize in simply manufacturing physical products, but some are also able to handle

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264-655: The 1980s, it expanded into labels and other packaging, and also expanded internationally into the United States and the United Kingdom. It went public on the Toronto Stock Exchange in 1980. In the 2000s, it started shifting away from custom manufacturing and towards labels and packaging; in 2005, it sold its custom manufacturing business to KCP Income Fund for $ 256 million. In 2006, it sold its interest in ColepCCP,

286-511: The BOPP production partnership with ICI ended, and UCB Films assumed full ownership of Sidex Ltd. There followed a period of investment in the Wigton plant, raising capacity from 10,000 to 35,000 tonnes pa. In the 1990s, around €135m was invested in the plant, including a second £10m coater plant in 1997, while a third was added in 2001 with a new bubble line to bring capacity to 15,000 tonnes per annum. In 1996, UCB Films acquired British Cellophane Ltd and

308-522: The British Sidac name and, four years later entered into a joint venture with ICI to manufacture BOPP on the Wigton site. A new £3m factory was built to be operated by this new company called Sidex Ltd. In 1973 British Sidac became a wholly owned subsidiary of the UCB Group of Belgium . In 1982, the British Sidac plant at St Helens was closed and in 1987, UCB Films acquired La Cellophane Espanola. In 1987

330-664: The UK. This new venture, British Cellophane Ltd (BCL) began production at a major new plant in Bridgwater , Somerset in 1937. In 1942, La Cellophane Espanola was founded in Burgos , Spain In 1961 ICI developed Biaxially Oriented Polypropylene, which, because of its clarity, gloss, sparkle, crispness and grease resistance, resembled cellulose film rather than polyethylene to which it is chemically related. In 1963 British Rayophane and British Sidac merged under

352-627: The United States, 7% were in Latin America, 28% were in Europe, and the other 14% were in Asia-Pacific and Africa. CCL's Label business is its largest business segment; contributing approximately 63% to CCL's total sales as of 2016. The Label Division provides package decorating solutions and specialty label applications for global customers. CCL Label is one of the world's largest converters of pressure-sensitive and film materials. The company produces

374-680: The company for £680 million. Their shrinkfilms production site based in Germany was rebranded Innovia Shrinkfilms. CCL Industries Inc acquired the USA operations of Treofan Americas in July 2018. They were rebranded Innovia Films. The acquisition expanded the company's footprint by providing a manufacturing facility in Mexico. Their manufacturing process is the Tenter system. In 2020 CCL Industries acquired Flexpol S.p.a.

396-461: The company has many risks attached. Companies must first identify their core competencies before deciding about contract manufacturers. A company's competencies are what make them competitive in the marketplace . If a company allows another company to take control of them, it loses that advantage. When deciding about contract manufacture, the company should weigh the benefits and associated risks. For small companies, contract manufacturing may not be

418-677: The latter field also includes, in addition to jobbing, a higher level of outsourcing in which a product-line-owning company entrusts its entire production to a contractor, rather than just outsourcing parts of it. Many industries use this process, especially the aerospace , defense , computer , semiconductor , energy , medical , food manufacturing , personal care , packaging , and automotive fields. Some types of contract manufacturing include CNC machining, complex assembly, aluminum die casting, grinding, broaching, gears, and forging. The pharmaceutical industry uses this process with CMs called contract manufacturing organizations , constituting

440-491: The market for cellulose films was contracting due to substitution by oil based polymers, Innovia decided to close one of its plants to reduce costs and improve efficiency. As a consequence, the Bridgwater factory closed in the summer of 2005. Innovia Films completed the sale of its cellulose films business on 30 June 2016 to Futamura Chemical Co. Ltd, a Japanese company. In December 2016, the Canadian firm CCL Industries bought

462-712: The trade name Cellophane . In 1997, UCB Films bought the ICI Propafilm business in Ghent , and it also bought the Tecumseh , Kansas plant from US cellulose film producer Flexel Inc, to become one of the world's largest producers of cellulose film. In 2000 it bought the Mexican company Cydsa, closing its plant in Burgos . In 1999 a new BOPP manufacturing plant was opened in Melbourne, Australia. Mr Tony Blair MP, Rt. Hon. Prime Minister opened

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484-492: Was founded with a factory in Ghent , Belgium. Six years later SIDAC formed a company in the UK to distribute its Ghent-produced film. This later became British Sidac Ltd, which opened its first production plant at St Helens in 1934. Also in 1934, British New Wrap Co Ltd was formed in Wigton, and production of cellulose film began at the site which had previously been set up to produce Rayon . In 1935, Courtaulds and La Cellophane SA joined forces to produce and sell Cellophane in

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