INDIA – German packaging and bottling machine manufacturer Krones has commenced construction of a US$36.33 million bottling equipment manufacturing plant in Vemagal, Karnataka.
The project is expected to create approximately 550 jobs and is part of the broader US$118 billion investment initiatives announced at this year’s Global Investors Meet (GIM) Invest Karnataka event.
The groundbreaking ceremony was led by M B Patil, Karnataka’s Minister for Large and Medium Industries, reaffirming the state government’s commitment to attracting and realizing high-impact investment projects.
Patil had previously led a delegation to Germany in December 2023, where discussions with Krones at its Neutraubling headquarters resulted in a preliminary Memorandum of Understanding (MoU) for the investment.
The Vemagal facility is set to enhance Krones’ production capacity while contributing to the region’s economic growth and employment opportunities.
This expansion aligns with Krones’ sustainability strategy, unveiled in April 2024, which aims for net-zero greenhouse gas (GHG) emissions across its entire value chain by 2040.
In line with the Science Based Targets initiative (SBTi), the company plans to reduce 90% of its emissions across Scopes 1, 2, and 3, offsetting the remaining 10% through verified carbon removal projects.
The new facility will integrate energy-efficient technologies to minimize its environmental footprint while ensuring cost-effective, high-quality manufacturing solutions for the growing Indian market.
With this strategic expansion, Krones reinforces its presence in India while supporting the global transition toward sustainable packaging and bottling solutions.
Meanwhile, in July last year, the company’s subsidiary, Krones Recycling, commenced business operations as a newly founded subsidiary with its headquarters in Flensburg, Germany.
The subsidiary will take over all activities related to plastics recycling, while continuing to leverage Krones’ global production, sales, and service network.
Michael Gotsche, managing director of Krones Recycling, highlighted the advantages of the new company structure, stating, “Due to leaner processes and structures, we will be able to respond more quickly to changes in the constantly evolving recycling market.
“The newly founded company offers us the necessary flexibility and scope for action to implement decisions in a customer-oriented, fast, and optimized manner.”
Referring to the spin-off as a “logical step,” Krones CEO Christoph Klenk added, “The spin-off will enable Krones Recycling to develop faster and in line with market requirements.”
Krones Recycling currently processes a variety of plastics, such as PET, PE, PP, and PS, on its lines worldwide.
The company claims that at least 30% of the plastics processed will be returned as recycled resources.
“Our vision is to make a daily contribution to a global circular economy for all plastics by offering our customers sustainable and profitable recycling solutions,” said Gotsche.
The company will continue to conduct intensive research into new innovations at its in-house Recycling Technology Centre.
This facility allows tests on the recyclability of various plastics — including adhesives and colors — to be carried out under real conditions on behalf of customers.
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