News

Sonoco, the global paper and plastic packaging manufacturer, is targeting a 50% increase in sales by 2012 and will focus more on commercial packaging.

Sonoco's sales are currently split roughly 50-50 between commercial and industrial packaging, but president Harris DeLoach said on Friday (7 December) that he wanted a 60-40 ratio in favour of commercial.

Outlining the company's Progress Forward plans for the next five years, DeLoach said this would be achieved through a combination of new product development, improved sustainability, cross-selling products across the business, and strategic acquisitions.

There has been "substantial" growth in rigid plastic containers following recent acquisitions – such as Clear Pack Company and Matrix Packaging – and sales are projected to increase five-fold during the two years to 2008.

The company, which has nine sites in the UK, also wants annual sales from new products to reach between £65m ($125m) and £75m over the next five years

DeLoach said Sonoco wanted to "continue the profitable growth momentum" of the past five years, when turnover rose from £1.4bn to a projected £2bn for 2007.

"While we remain cautious about the North American economy as we enter 2008, we believe our strong mix of businesses will result in another record year," he said.

Sonoco, which has its headquarters in South Carolina, US, operates in 35 countries.