Sofidel Acquires New U.S. Converting Operations, to Open New Headquarters in Philadelphia

In addition to its announcement this past week regarding a greenfield tissue mill in the Columbus, Ohio, USA, area (see article above), Sofidel (Italy), further announced that it has acquired from Green Bay Converting Inc. a tissue converting plant (photo) and its corresponding business in Green Bay. Wis., and a new state of the art tissue converting building in Hattiesburg, Miss. Sofidel also is opening a new American head office in Philadelphia, Pa. 

 

 

Founded in 1999, Green Bay Converting (GBC) is an independent U.S. converting company. It has more than 300 employees and conducts tissue converting activities for the North America market, both in the Away-from-Home (AfH) and Consumer segments.

The assets covered by the acquisition are:

• An 800,000 sq. ft. converting plant in Green Bay, a key region for the production of tissue in the U.S. that is rich in know-how and human resources, where Sofidel already has a presence with its own converting plant and connected activities.
• A 400,000 sq. ft. brand new industrial building in Hattiesburg, which will house a new converting plant for a total additional annual production capacity amounting to approximately 65,000 metric tons, to which in the next few months several production lines will be added, as well as a few production lines at the Green Bay location.

For its part, GBC will continue to run its remaining operations as a contract manufacturer.

Additionally, Sofidel has also recently set up a new office in Philadelphia, on the East Coast, one of the most densely populated areas in the U.S., which will serve as the new headquarters of Sofidel America.

 

The U.S. activities announced in this article and the one above combine with the recent opening of a new production plant in Tulsa, Okla., producing AfH and consumer private label products.

As a whole, Sofidel is committed to investing more than $300 million over three years (2015-2016-2017) in the U.S.

"The U.S.market is a key market for our Group, because it is the first in the world in terms of per capita consumption in the tissue sector," said Luigi Lazzareschi, CEO of Sofidel Group. "Today, the Sofidel Group has operations in seven states, and with the recent investments we are creating the necessary conditions to further increase our service levels and enhance the added value that we offer our customers."

After its arrival on the continent in 2012 with the acquisition of operations in three U.S. states, Sofidel today is active in seven states—Nevada (Henderson), Oklahoma (Tulsa), Wisconsin (Green Bay), Mississippi (Hattiesburg), Ohio (Circleville), Florida (Haines City), and Pennsylvania (Philadelphia). This geographical expansion in capacity is in line with the Sofidel strategy focused on providing highest quality products and services while being close to the markets in which it operates. These activities represent the second step in the development plans of Sofidel America.

Sofidel America was established in 2012 through the acquisition of the Cellynne tissue company.