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Amcor (AMCR) Unveils a New Healthcare Packaging Plant

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Amcor Plc (AMCR - Free Report) recently unveiled its greenfield healthcare packaging facility in Tuas, Singapore, to meet customers’ increasing demand for healthcare packaging across the region.

The new facility contains cleanroom manufacturing environments, capability in three-, seven- and nine-layer co-extrusion blown film and state-of-the-art flexographic printing. It will support growth in Asia Pacific healthcare packaging market as it is expected to grow at a rate of more than 8% through 2026.

Amcor is starting an innovation center for healthcare films in the Singapore plant to drive improvement in co-extrusion blown film technology. The new facility’s global product platform and enhanced innovation capabilities will help Amcor to offer new technologies, innovations and compelling products to efficiently serve its Asia Pacific customers. Tuas facility will not only help to expand its product offerings but also enhance its capacity to support current and future customer growth.

Amcor is committed to making all its packaging to be recyclable by 2025 in order to fulfill customers’ increasing demand for more sustainable products. In line with that, the company’s new facility uses water-based printing technology with zero solvent emissions. Its multilayer blown films can produce products, which are easy to recycle and its multilayer film technology allows new product innovation with a lower carbon footprint.

Amcor’s peer companies like Sonoco Products Company (SON - Free Report) , Packaging Corporation of America (PKG - Free Report) and Sealed Air (SEE - Free Report) are also offering sustainable packaging to consumers.

Sonoco, in collaboration with Tellus, declared the receipt of a prequalified label — Check Locally — for recyclability from How2Recycle for the Natrellis line of food packaging. Natrellis technology fulfills consumers’ increasing preference for more sustainable options for high-quality refrigerated and chilled foods.

Packaging Corporation’s 89% of all corrugated products were recovered and directed into the recycling stream in 2020. The company’s Sustainable Forestry Initiative certified mills are focused on introducing new harvested fiber to maintain sustainable fiber supply.

Sealed Air plans to design 100% recyclable or reusable packaging solutions by 2025. So far, 50% of its solutions are already being designed for recyclability. Consumers’ growing awareness and consequent increase in demand for sustainably packaged products is a major growth scope for these companies.

Amcor continues to invest in growth and expand capacity in higher-growth segments like healthcare, protein and premium coffee or hot fill beverage containers and barrier films. Emerging markets will continue to be a key driver of organic growth. The company has more than $3 billion in annual sales from 27 profitable emerging market businesses. To meet ever-evolving consumer needs through innovation and stay ahead of the curve, the company invests around $100 million annually in R&D.

Amcor has begun the construction of a new greenfield plant in China to add capacity to its business in a high-growth market. The new state-of-the-art plant will be the largest in Amcor's China network and will commence operations by the end of calendar 2022 to support a range of global and local customers, primarily in the food and personal care segments.

Amcor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price Performance

In the past year, Amcor’s shares have gained 2.7% compared with the industry’s growth of 11.3%.

Zacks Investment ResearchImage Source: Zacks Investment Research