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| New company formed to produce pouches
for the Mexican market Kapak Corporation and GIPSA, Guadalajara, Mexico, jointly announce the formation of new company called GIPAK to produce pouches for the Latin American market. As the leading U.S. producer of preformed pouches, Kapak had been investigating partnership alternatives which would enable it to extend its manufacturing capabilities to other countries. GIPSA, is a state-of-the-art, vertically integrated converter with 28-years of manufacturing experience in Mexico. Similarly, GIPSA, has been looking to partner with an outside firm which could bring pouch-making expertise to its marketplace. "We are very pleased to have entered into a partnership with a company with GIPSA's reputation in Mexico. We are eager to use their manufacturing capability to present cost-effective pouch options to extend our capabilities into Latin America," says Gary Bell, president and chief executive officer (CEO), Kapak. The name for the new company, GIPAK, is derived from the names of the parent firms. The technology exchange facilitated by the new venture will promote a variety of pouch structures including: standup, preformed, retort and spouted pouches with fitments. Oscar Aceves, president and CEO, GIPSA says, "Our goal was to partner with a company that is a true expert in pouch manufacturing. Kapak brings a solid 15 years of stand-up pouch production experience in this area. This enables the joint venture to be up and running quickly." GIPAK will be utilizing GIPSA's current production facilities in Guadalajara. As a vertically integrated manufacturer, the company's capabilities include the blowing of polyethylene; two three-layer coex lines and five flexographic printing presses. To help facilitate a quick start up, the company will be exchanging personnel for onsite training in both facilities. Rick Luftman, director of sales and marketing, Kapak explains, "When Kapak started making stand-up pouches 15 years ago, the infrastructure simply didn't exist on the filling production end. Today, there are copackers and equipment manufacturers in place to support this packaging form. That will enable the GIPAK operation to enter the marketplace very quickly." GIPSA is a leading producer of flexible packaging materials. The company is known for its expertise in flexographic printing as well as quality and service. It produces packaging structures for a wide variety of applications including food, health and beauty aids and industrial products. The company operates a 64,500 sq. ft. facility in Guadalajara, Mexico. For more information, visit GIPSA's web site at www.gipsa.com.mx . Kapak, a privately-held company founded in 1961, is a leading converter of flexible packaging materials. Kapak specializes in a variety of preformed pouches and roll stock. Its expertise includes a wide variety of flexible packaging structures, custom shapes, spout fitments, resealing options and state-of-the-art graphics. The company specializes in both solid and liquid product applications in a variety of markets, including: food, beverage, coffee, medical, industrial, pet food, health and beauty aids, agricultural and chemical. For more information, visit Kapak's web site at www.kapak.com. Please forward U.S. inquiries to: KAPAK Corp Please forward Latin American inquires to: GIPAK, S.A. de C.V.
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