HOUSTON (ICIS news)--US packaging adhesives demand should keep growing above the rate of gross domestic product (GDP) growth, a formulator said on Wednesday.
Analysts are pretty upbeat because there s a consistent market over time, particularly with flexible packaging - hot pockets, potato chip bags - all kinds of packaging used especially in the food industry, said Ted Clark, chief executive of Indiana-based Royal Adhesives & Sealants.
Real GDP -- the output of goods and services produced by labour and property located in the United States -- increased at an annual rate of 4.0% in the second quarter of 2007, according to preliminary estimates by the Bureau of Economic Analysis in August. In the first quarter, real GDP increased 0.6 percent.
On Monday, Royal announced that it has added to its packaging adhesives business by acquiring the Bond-Plus water-based adhesives and coatings product line of Industrial Adhesives (IAC) for an undisclosed sum.
The acquired product line consists of ethylene-vinyl acetate (EVA), polyvinyl acetate (PVA), and acrylic latex water-based adhesives and coatings that are primarily sold to the paper, graphic arts and laminating markets.
The acquisition will expand Royal s presence in packaging adhesives markets it already serves and will add some new technology to the company s portfolio, Clark said.
Clark said Royal is a formulator with about $100m (Euro71m) business annually, serving all sizes of customers but particularly providing custom formulation services for small-to-medium volume adhesives customers.
($1 = Euro0.71)
Analysts are pretty upbeat because there s a consistent market over time, particularly with flexible packaging - hot pockets, potato chip bags - all kinds of packaging used especially in the food industry, said Ted Clark, chief executive of Indiana-based Royal Adhesives & Sealants.
Real GDP -- the output of goods and services produced by labour and property located in the United States -- increased at an annual rate of 4.0% in the second quarter of 2007, according to preliminary estimates by the Bureau of Economic Analysis in August. In the first quarter, real GDP increased 0.6 percent.
On Monday, Royal announced that it has added to its packaging adhesives business by acquiring the Bond-Plus water-based adhesives and coatings product line of Industrial Adhesives (IAC) for an undisclosed sum.
The acquired product line consists of ethylene-vinyl acetate (EVA), polyvinyl acetate (PVA), and acrylic latex water-based adhesives and coatings that are primarily sold to the paper, graphic arts and laminating markets.
The acquisition will expand Royal s presence in packaging adhesives markets it already serves and will add some new technology to the company s portfolio, Clark said.
Clark said Royal is a formulator with about $100m (Euro71m) business annually, serving all sizes of customers but particularly providing custom formulation services for small-to-medium volume adhesives customers.
($1 = Euro0.71)
