Sonoco (SON) Opens Innovative Packaging Solutions Studio

Packaging company Sonoco Products Co. SON recently opened its state-of-the-art Innovative Packaging Solutions iPS Studio, which will offer collaborative spaces to consumers for exploring packaging concepts and technology. This will help them develop designing and manufacturing options for potential commercialization.

Sonoco has invested $12 million toward building the new research and development studio. Based in Hartsville, SC, the iPS studio is a pioneering research, development and innovation center which will connect consumer ideas & experiences and market insights for developing new packaging solutions.

Notably, the iPS studio consists of spaces to monitor customer interface with products and packaging in a variety of environments including retail, kitchen and bathroom. The studio also has a pilot plant to test manufacturing performance, state-of-the-art printing capability and rapid prototyping labs.

One of the major components of the arrangement is Sonoco's i6 Innovation Process. This method involves a six-step approach toward technical capabilities pertaining to a broad portfolio of services and packaging options, in order to develop 360° Customized Solutions for customers.

Sonoco intends to continue investing capital and other resources for meaningfully expanding the scale of consumer packaging, and remains committed toward its Grow and Optimize strategy. Achieving higher-than-average growth and improving operating margins remain two of the company's priorities.

Sonoco will also strive to optimize its structure through simplification and improved efficiency, while maximizing free cash flow and targeting capital deployment for growing its businesses and returning cash to its shareholders. The company has capital growth projects in the pipeline through 2017 that will help expand its global production capability in composite cans, flexible packaging and rigid plastic containers.

Sonoco is a global provider of a variety of consumer packaging, industrial products, protective packaging and packaging supply-chain services. The company is also the largest producer of paper-based tubes and cores in North America.

Sonoco currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the sector include Berry Plastics Group, Inc. BERY, Graphic Packaging Holding Company GPK and Astec Industries, Inc. ASTE. All three stocks carry a Zacks Rank #2 (Buy).

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