Guala Closures Group – a global leading producer of closures for spirits, wines, water and beverages and oil bottles with 30 plants spanning 5 continents – has recently signed an agreement to develop a new plant in Chengdu in the Chinese Province of Sichuan.
Located in a renowned baijiu (Chinese traditional liquor) region, the plant and R&D center will focus on closures for the premium and luxury segments, with plans to produce an estimated 130 million closures per year, positioning the plant as a world-class facility tailored for the Chinese spirits market.
The new US$29 million plant will cover an area of 13,800 sq.meters, and is expected to employ 110 people, confirming the Group’s commitment to the domestic development in the spirits sector, as well customer support in China, where the Group has been operating for over 20 years since 1998 through a plant in Beijing.
Chinese spirits segment represents one quarter of the global spirits market and is the largest and fastest growing market in the world. The Chinese alcoholic drinks market amounted to €175 billion (US$175 million), largely made up spirits, with baijiu alone commanding 65% share of the market.
The investment in the new Chinese plant represents a further achievement in the strategy of Guala Closures to strengthen its position in the luxury segment as can also be witnessed by the recent acquisition of Labrenta, an Italian company with a long history of specialisation in luxury closures.
Gabriele Del Torchio, President and CEO of Guala Closures said, “The development of the new plant represents a new milestone that allows us to build up our presence in China. I would like to thank Investindustrial and our partner in China, CIC, for their support in making this project a reality. Moreover, I would like to thank Chengdu City Government for the support in this project. The new Chengdu plant is fully in line with our strategy, characterised by a high degree of internationalisation of our activities and a strong collaboration with local authorities to ensure the highest presence in the market and proximity to customers. As for the luxury segment, on a global level the sector is characterised by a great fragmentation on one hand, and on the other by a growing market demand for high-end products with attention to details. The investment in the Chengdu plant highlights our long-standing belief in the Chinese market and commitment to maintain our leadership position in the luxury closures sector, a segment that will grow strongly in the coming years, especially in the Asian region.”
Guala Closures presently has more than 4,850 employees working in 30 plants on 5 continents, with products marketed in more than 100 countries.
