Mr. Geoffrey Martin reports

CCL INDUSTRIES TO OPTIMIZE INNOVIA FILMS' GLOBAL CAPACITY

CCL Industries Inc. intends to permanently close its Innovia operation in Merelbeke, Belgium, over the course of the 2024 first quarter.

Innovia will consolidate all bubble film volume into its United Kingdom and Australian operations, targeting $17-million to $20-million of incremental operating income annually once the closure is complete. In the fourth quarter of 2023, the company expects to record a one-time pretax restructuring charge to include both the closure cash costs, largely employee severance accruals in the range of $25-million to $30-million and an estimated non-cash, goodwill impairment expense of approximately $120-million for Innovia.

Geoffrey T. Martin, president and chief executive officer, commented: "Our operation in Belgium is a smaller two-bubble-line plant using older equipment with the highest cost to serve in our global network. Given the softer post-Covid demand environment, it is essential we optimize existing capacity for the future, while enhancing financial performance for 2024. Additionally, planned new technology investments in Germany and Mexico, plus the impact of building Ecofloat volume in Poland, should drive further gains in our operational effectiveness and profitability in 2025 and beyond."

Mr. Martin concluded, "We are very grateful for the many years of contribution from our people in Belgium and appreciate their understanding, professionalism and timely engagement as we collaborated on the final closure arrangement."

About CCL Industries Inc.

CCL Industries Inc. employs approximately 25,300 people operating 205 production facilities in 43 countries with corporate offices in Toronto, Canada, and Framingham, Mass. CCL is the world's largest converter of pressure sensitive and specialty extruded film materials for a wide range of decorative, instructional, functional and security applications for government institutions and large global customers in the consumer packaging, health care and chemicals, consumer electronic device and automotive markets. Extruded and laminated plastic tubes, aluminum aerosols and specialty bottles, folded instructional leaflets, precision decorated and die cut components, electronic displays, polymer banknote substrate, and other complementary products and services are sold in parallel to specific end-use markets. Avery is the world's largest supplier of labels, specialty converted media and software solutions for short-run digital printing applications for businesses and consumers available alongside complementary products sold through distributors, mass market stores and e-commerce retailers. Checkpoint is a leading developer of radio-frequency and radio-frequency-identification-based technology systems for loss prevention and inventory management applications, including labelling and tagging solutions, for the retail and apparel industries worldwide. Innovia is a leading global producer of specialty, high-performance, multilayer, surface engineered films for label, packaging and security applications. The company is partly backward integrated into materials science with capabilities in polymer extrusion, adhesive development, coating and lamination, surface engineering and metallurgy; deployed as needed across the four business segments.

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