Berry Global Expands Its Capabilities With Investment in European Nonwovens Capacity, Providing Added Flexible Capacity for Biodegradable Content for Hard Surface Disinfectant Wipes

Rhea-AI Summary

Berry Global Group (NYSE: BERY) announced a $110 million investment in its European wipes segment, enhancing production capacity for disinfectant wipes in response to pandemic-driven demand. This expansion will strengthen its existing Spunlace platform, focusing on sustainability with biodegradable or recycled materials. The new production line aims to increase capacity by over 300 million square meters and is expected to be operational by Q3 2022. This strategic move demonstrates Berry's commitment to supporting evolving consumer trends in health and hygiene.

Positive

• Investment of $110 million in wipes segment to meet pandemic-driven demand.
• Increase in production capacity by over 300 million square meters.
• Focus on sustainability with biodegradable or recycled materials.

Negative

• None.

Today, Berry Global Group, Inc. (NYSE: BERY), a leading global nonwovens manufacturer, announced its second investment for 2021 in the wipes segment to support the long-term consumer behavior shift towards infection prevention, amplified by the COVID-19 pandemic. The investment, located in Europe, will increase Berry’s production footprint in support of its global customers, with total investments reaching over $110 million in nonwoven materials for products such as hard surface disinfectant wipes. Prior to the demand surge of 2020, the European impregnated wet wipes segment, for home cleaning and disinfecting, was growing at the rate of five percent in the 2014 to 2019 time frame. COVID-19 has increased heightened focus on sanitation and personal hygiene for infection prevention, suggesting permanent consumer trends away from the chore of cleaning to a health and safety priority.

“We strategically partner with many of the world’s leading brands with wipe materials, ensuring our investments align with demand for today and for the future. The reliability of our capacity and scale are paramount to our customer support and the trusted relationships we desire to maintain,” said Curt Begle, President of Berry’s Health, Hygiene, and Specialties Division.

This new asset will add to the Company’s existing Spunlace platform, further expanding its sustainable wipes portfolio. Recognizing its customers’ ongoing environmental sustainability goals, the new asset will incorporate the production of biodegradable or recycled nonwoven substrates, increasing Berry’s capacity in Europe by more than 300 million square meters. The new line is expected to be commercially available in the September quarter of 2022.

“This multimillion-dollar investment further completes our industry-leading portfolio. Through flexible assets such as this installation in Europe, we can better serve our customers with reliable, sustainable solutions for the wipes market,” said Achim Schalk, EVP and General Manager, EMEIA for Berry’s Health, Hygiene, and Specialties Division.

Berry continues to leverage its ability for continued investments in the latest technology to better serve the market. A longtime leader in the nonwovens space, Berry does not sit idle, and instead continues to push forward with its global size and scale to meet the evolving needs of its customers.

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/20210323005186/en/

FAQ

What is Berry Global's recent investment amount?

Berry Global announced a $110 million investment in its wipes segment.

When is the new production line expected to be operational?

The new production line is expected to be commercially available in the September quarter of 2022.

How will the investment impact Berry Global's production capacity?

The investment will increase Berry's production capacity in Europe by over 300 million square meters.

What type of materials will Berry Global focus on with this investment?

Berry Global will focus on biodegradable or recycled nonwoven substrates as part of its sustainability goals.