Ann: Form 8K - 2Q24 Results, page-10

Amcor 'eight-figure' thermoforming investment fills medical market gap
February 21, 2024 12:00 PM
Packaging supplier Amcor Flexibles North America Inc. is making an "eight-figure" investment to expand its North American thermoforming capacity for the health care market.
The investment includes automated thermoforming machine purchases from Kiefel Technologies, Plastics News learned, for Amcor's Oshkosh, Wis., facility.
"During the supply chain challenges we had [the last few years], we learned many of our customers were procuring from two different companies so there was no marriage between the top and bottom," Art Castro, vice president and general manager of Amcor's health care business, told PN at MD&M West in Anaheim.
Much of the market was sourcing parts like trays and lids from separate suppliers. Customers wanted to simplify their supply chain from "two different companies … to create one unit from one company," Castro said.
Customers will be able to source thermoforms and companion die-cut lids from the single Oshkosh location, helping streamline product manufacturing and distribution.
Investing in the facility was the "missing" piece for Amcor's portfolio, he said. "This portion of the industry is just growing. … We weren't as big in [thermoforming]."
The new equipment will make packaging for the medical, pharmaceutical and consumer health sectors, the release said.
The company plans to continue making investments in thermoforming for the health care market, Castro added.
"As demand grows, this strategic investment underscores Amcor's commitment to … anticipating and meeting our customers' unique thermoforming needs," Castro said in a news release.
The new equipment is expected to be operational by December 2024 and located in the Class 7 clean room at the plant. Amcor also has health care plants in Ireland, Minnesota and Puerto Rico.

Medical market growth
Amcor is focused on the medical sector, Jesse Blake, senior director of marketing and product development, told PN, as it sees increased demand for packaging for minimally invasive cardiovascular devices, pharmaceuticals and biologics.
The medical market has seen "a change in the way medicine is delivered," Blake said. Former solid-dose drugs are now in liquid form in pre-filled syringes housed in thermoformed trays.
"You went from an oral, solid-dose with someone getting a pill every day," he said. "Now there are these biologics, where a patient will get their medicine once a week or once a month."
Parent company Amcor plc, based in Australia, makes packaging for food and beverage, pharmaceutical, medical, home and personal care, and other markets. It generated $14.7 billion in annual sales in fiscal year 2023, with about 41,000 employees at 218 locations in 41 countries.
The company is No. 16 in PN's ranking of North American thermoformers, with estimated relevant sales of $218 million.