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    Online Exclusives

    Ink Companies are Looking to Expand in Latin, South America

    Ink industry executives anticipate further growth in the region.

    Ink Companies are Looking to Expand in Latin, South America
    INX’s new metal deco ink facility in Brazil. (Photo courtesy of INX International Ink Co.)
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    David Savastano, Editor09.10.20
    Editor’s Note: In part 1 of Ink World’s 2020 Latin and South America Report, industry leaders discussed the impact of COVID-19 on the ink and printing industry in the region. In this feature, we look at expansion in the region.

    The printing and ink industries in South America and Latin America have seen growth prior to COVID-19, and some ink companies see opportunities to expand their operations within the region.

    In 2017, INX International Ink Co. acquired Creative Industria e Comercio Ltda., a leading flexo and gravure ink manufacturer in Sao Paulo, Brazil. Since then, INX has been expanding its operations in Latin and South America, adding two new facilities since the beginning of 2019.

    “We began operations in Colombia in early 2019 and in Paraguay during the fourth quarter last year, and we are studying the markets in other Latin and South America countries, such as Ecuador, Chile and Peru,” Guilherme Ribeiro, executive director of INX Brazil,
    said. “In Colombia, our 10,000 square-foot plant handles only distribution at this time but we want to install production equipment next year and produce up to 20 tons of ink per month. We expect to start selling liquid, solvent based gravure and flexo this year.

    “In Paraguay, we are looking to have another 10,000 square-foot plant available later this year,” Ribeiro added. “We currently work with a local partner to distribute products, and we are studying options to start producing inks next year. This is part of our commitment

    Sun Chemical has recently made new plant investments in Bogota, Colombia; Lima, Peru; and Monterrey, Mexico.

    “We’ve relocated our operations to new facilities that feature expanded production capabilities and help manage the needs of customers in these regions,” said Fernando Tavara, president, Sun Chemical Latin America. “Sun Chemical has also implemented Color Centers in Mexico and six other countries, with a seventh center coming to Ecuador before the end of the year. Significant investments have also been made in the new site in Bonsucesso, Brazil.”

    In 2017, Wikoff Color acquired Verti Produtos Químicos, a privately held flexible packaging ink specialist located in São Paulo, forming Wikoff Color – Brasil. Daniel Cavalcanti, regional manager Latin America & Caribbean for Wikoff Color, said future expansion might be in the offing for the region.

    “At the present time we aren’t actively seeking to add new locations in LATAM, but as we continue growing in this region, the need to add new locations may arise and we won’t rule out the right opportunities,” said Cavalcanti.

    Richard Möller, managing director hubergroup Brasil, said that hubergroup has made some important investments in recent years in South America, including new manufacturing plants in Chile, Colombia and Brazil. Möller said that considering the pandemic will still last a certain time, hubergroup has no immediate plans to increase its operations in the South American market.

    “But we monitor the development of and are attentive to that the market precisely and take presented opportunities. Personalized investments will always be evaluated in conjunction with our customers and local partner’s needs,” Möller added.

    “We have positive expectations for the coming years,” Möller noted. “We assume an increasing demand for more sustainable printed products. hubergroup is some steps ahead on these issues with our wide range of certified products. We also have an optimistic view of economic recovery in some regions of the continent, which will benefit the printing industry as a whole.”

    Cavalcanti said that Wikoff Color is seeing steady ongoing growth of the printing industry in Brazil and Mexico.

    “Our outlook for Latin and South America in the coming year is bright,” said Cavalcanti. “We saw the most growth in the packaging and label markets, particularly for food, pharmaceutical and household supplies applications, i.e. hand sanitizer, cleaning and disinfecting products. The commercial market faced the most challenges with a clear decline in demand. We are optimistic about the opportunities for sales growth in flexible packaging, particularly EB flexo Gelflex technology due to the increasing market demand for sustainable packaging.”

    “In general terms, there is a great growth potential for some segments, with the increasing tendency to use recyclable packaging and a decrease in trade of bulk products due to health and quality issues,” Ribiero concluded. “The digital inks market seems promising with new available technology starting to show its benefits.”
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