FPS Flexible Packaging Solutions, wholly owned by Al-Dabbagh Group, announces its investment in a new plant in China with an annual capacity of scaling up to 3 million FIBCs. The expansion is to cater to the rapidly increasing demand in the Electric Vehicle (EV) battery powder industry. The new plant will be located in Ji’an, Jiangxi province and will be operational in Q2, 2022.
FPS is one of the global leaders in the FIBC industry, offering a wide range of products backed-up by a global production and supply chain network with localized industry knowledge and solutions.
Currently it operates one plant in Changzhou, Jiangsu province with a capacity of 3 million FIBCs per annum and a headcount of 550 colleagues. With the investment, FPS will grow in China to a capacity of more than 6 million FIBCs per annum, employing over 1,000 people.
The China business already has extensive experience in the packaging for EV battery powder throughout its entire supply chain, from mining until cathode and anode, and everything in between. A new production facility is the result of the growing industry and increased demand from the market.
“The new production facility in Ji’an, Jiangxi will place us in a strong position” said Murat Acar, General Manager APAC. “We are growing together with the battery powder industry and are investing in our liner capability and specific production set-up to ensure we will be able to cater to the growing FIBC demand in the market, and that our business is ready for the future. We look forward to increasing our support to the battery powder industry in the APAC region and beyond.”
More than 500 people will be employed at the new location, which will have the most advanced equipment with higher efficiency and lower energy consumption, designed for employee and product safety. This equipment will be powered by solar panels.
“We are very excited about the new investment in Ji’an as it aligns with our vision to deliver unmatched value and experience to our customers’ growth aspirations, provides gainful employment to our future colleagues and improves the sustainability needs of our industry”, said Hari Kumar, CEO of FPS.
Al-Dabbagh, the single shareholder of FPS, is fully supporting the ambitious growth plans in APAC.
Dirk Vanderbroeck, the CFO of Al-Dabbagh Group said that “the decision to invest in the FPS business was driven by the Group’s knowledge and confidence in FPS as a 50% JV partner over the past 12 years and the potential of FPS to grow in key markets and segments. Investments such as the one in Ji’an supported the investment thesis while enhancing the sustainability impact and fulfilling customer needs.”
The total investment in this project is expected to be approximately 8 million USD. FPS targets the production facility with state-of-the-art equipment to be operational in Q2, 2022.