Sun Chemical Corporation, a wholly owned subsidiary of DIC Corporation, has resolved to build a new plant for liquid inks for packaging applications in Turkey’s Alia’a Organize Sanayi Bölgesi (ALOSBI). Sun Chemical’s aim is to increase its production capacity in the growing markets in Europe, Middle East and Africa (EMEA) and expand its business in Turkey, where it already enjoys a strong presence. Construction of the new plant will begin in 2Q in 2014 with completion scheduled for 3Q in 2015.
Recent years have seen a tapering of demand for inks for publishing, primarily in developed countries, owing to the shift toward digital media. In contrast, demand for liquid inks for food and beverage packaging—which is unaffected by the growth in digital media or by economic trends—remains firm in both emerging economies and developed countries. DIC has identified liquid inks for packaging applications as one of its mainstay printing inks business’ core product groups in its DIC105 medium-term management plan, which began in fiscal year 2013, and is promoting a variety of related strategic measures in markets around the world.
The EMEA market for liquid inks for packaging applications is expected to grow by approximately 2%–3% annually for the next several years. Sun Chemical is looking to boost its sales in the region by an even higher rate with the aim of increasing its market share. The decision to expand its production capacity in Turkey at this time is one of a number of crucial initiatives designed to support the company’s growth strategy. Reasons for choosing Turkey for this investment include the country’s well-developed transportation links and its highly skilled labor force, as well as soaring domestic demand for liquid inks for packaging applications. Sun Chemical will seek to maximize these advantages to ensure solid business growth in Europe.
Through this investment in its core liquid inks for packaging applications business, as well as through the decisive implementation of other strategic measures outlined in DIC105, DIC will work to solidify its position as one of the world’s leading manufacturers of printing inks.