Berry Global Announces Investment to Address Ongoing Wipes Shortage to Meet Strong Customer Forecast for Long-term Demand

Rhea-AI Summary

Berry Global Group, Inc. (NYSE: BERY) has announced an investment exceeding $70 million to enhance its wipe substrate capabilities in the U.S. This initiative includes a new production line aimed at increasing capacity to better serve global customers. The investment is expected to support ongoing growth, particularly in the disinfectant wipes sector, which has seen a surge in demand due to COVID-19. Berry's proprietary Spinlace® technology will play a vital role in producing innovative nonwovens for multiple market segments, with commercialization targeted for the March quarter of 2023.

Positive

• Investment of over $70 million to enhance wipe substrate capabilities.
• Utilization of proprietary Spinlace® technology for innovative nonwovens.
• Targeted commercialization in March 2023 aims to meet increased demand.

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• None.

Today, Berry Global Group, Inc. (NYSE: BERY), a leading global nonwovens manufacturer, announced its investment of over $70 million in its United States wipe substrate capabilities. The investment includes a new line, producing additional capacity, and enabling the Company to better serve its global customers as well as support the continuing growth of its business. Berry provides many of the world’s leading brands with wipe materials for infection prevention. Prior to the demand surge of 2020, the impregnated wet wipes segment, specific for home cleaning and disinfecting, was growing at six percent in the 2014 to 2019 time frame. Amplified by COVID-19 prevention, the demand for disinfectant wipes is expected to have permanently shifted to its current, increased use.

Berry will add to its broad scope and scale by installing the line in the United States. This investment is complementary to Berry’s existing portfolio and features the Company’s proprietary Spinlace® technology. The U.S. investment has a targeted commercialization date of the March quarter 2023.

“This investment reflects the commitment we have in support of our customers’ growth plans and it is a clear signal of our intent to provide the best products in the disinfectant wiping space worldwide,” said Mark Siebert, EVP and General Manager, U.S. and Canada, Healthcare and Specialties at Berry.

Berry’s Spinlace® technology is a critical component of its growth in the wiping space, as it enables the Company to produce and deliver innovative nonwovens to customers across multiple market segments. These segments include home care, personal care, commercial, transportation, and healthcare. The newly announced asset will be flexible in its production capabilities, with the ability to supply materials for wipes, filtration, personal care incontinence, and healthcare applications.

Berry continues to differentiate itself in the market with its unmatched expertise and technologies. The Company’s Spinlace® technology is a highly efficient process that incorporates almost limitless material inputs, including pulp, with high-speed hydroentanglement. Additionally, Berry's proprietary Apex™ technology is combined with Spinlace® technology to impart customizable three-dimensional images directly into the fabric to provide differentiated functional and aesthetic attributes. The Apex® process improves strength, pick up or lay down of liquids, and improves visuals versus traditional manufacturing methods.

Berry holds a unique position in the nonwovens market with its ability to serve such a broad range of customers and technologies. The Company continues to reinvest and innovate in the nonwovens space, enabling efficient production of quality materials and furthering its leadership role in the industry.

About Berry
At Berry Global Group, Inc. (NYSE:BERY), we create innovative packaging and engineered products that we believe make life better for people and the planet. We do this every day by leveraging our unmatched global capabilities, sustainability leadership, and deep innovation expertise to serve customers of all sizes around the world. Harnessing the strength in our diversity and industry leading talent of 47,000 global employees across more than 295 locations, we partner with customers to develop, design, and manufacture innovative products with an eye toward the circular economy. The challenges we solve and the innovations we pioneer benefit our customers at every stage of their journey. For more information, visit our website at berryglobal.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204005145/en/

FAQ

What is Berry Global's recent investment about?

Berry Global announced an investment exceeding $70 million to improve its U.S. wipe substrate production capabilities.

What technology is Berry Global using for its wipes production?

Berry Global is utilizing its proprietary Spinlace® technology for producing innovative nonwovens.

When is Berry Global's new production line expected to start?

The new production line is expected to be commercialized in the March quarter of 2023.

How significant is the demand for disinfectant wipes according to Berry Global?

Berry Global indicates that demand for disinfectant wipes has surged and is expected to remain increased due to COVID-19.