Procap has gained a manufacturing foothold in the caps & closures sector in Germany, with the acquisition of Schoeller Cap Systems (SCS), located in Schwerin.
Procap Schwerin, as the new enterprise is to be known, will enable Procap – a major European player in the plastic caps and closures industry – to better serve local clients and international customers in the region that includes Germany, Scandinavia and Poland.
A key part of Procap’s overall strategy is to expand its customer base in the beverages industry, the Luxembourg-headquartered company says – SCS has to date focused solely on closures for the drinks industry.
“With no production in Germany, Procap had a very weak position in the market,” says Procap CEO Benoît Henckes.
“Five years ago, we set out to change this and decided that acquisition of an existing player in what is essentially a very competitive and slow-growing market would be the best option. SCS has a good reputation in the market and is therefore a good match for Procap.”
The Procap expansion into Germany follows the December 2012 opening of a new state-of-the-art production facility in Ireland, to serve local clients and the strong market for plastics closures in the UK and other western European countries.
Procap states: “The acquisition bolsters the company’s future in an already replete market that is witnessing the disappearance of smaller players as a result of the consolidation of the sector over the last few years.”
