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Cello-Pack Hopes New Press Will Wrap up Extra Business
September 21, 2006
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When Cello-Pack Corp. decided to upgrade its technology, it had to reinforce the plant floor.

The Cheektowaga-based packaging maker bought a $4 million "flexographic" printing press that runs faster, can produce larger-sized packaging, and can be switched from one order to the next more rapidly.

Cello-Pack executives predict the new press will help add millions of dollars to its its annual sales next year, so it is understandable the company would make accommodations for such a massive piece of machinery.

The Novoflex press, which was produced in Germany, arrived in crates on a dozen trucks. Fully assembled, it weighs 110 tons, so the company spent $130,000 to strengthen the floor. Cello-Pack also removed two of its five other presses to create space for it.

The mammoth, 10-color press is about to go into regular use. Company officials plan to tap into markets they couldn't previously compete in, and say the technology gives them an edge against their business rivals.

"It gives us some efficiency improvements we really needed to stay competitive in the business," said Richard S. Hummell, Cello-Pack's president. The company makes flexible packaging for hometown products such as Perry's ice cream and O-Cel-O sponges, as well as national household names like Hanes and Fruit of the Loom.

Cello-Pack was reaching its production limit with the presses it has, Hummell said. The company's locally based owners, brothers Richard and Anthony Gioia, approved buying the flexographic press to expand its capabilities. Six employees spent a week in Germany learning to run and maintain it.

The new technology is the latest step for a company founded in 1948 and acquired by the Gioias in 1989. When the Gioias bought it, the company had about 75 employees. Today, it employs about 130 people, operating as part of Gioia Management.

Cello-Pack's annual output is a staggering one billion packaging products. But packaging nowadays is more than just practical. The company markets its ability to print high-quality graphics, supported by an in-house team that creates or adapts images, depending on a customer's individual needs.

Hummell said the company wants to expand into larger packaging, some of which is used on items found on wholesale club store shelves. The eye-catching graphics on the products, which suits Cello-Pack's niche, serve as a "billboard" for the products.

Richard Gioia has watched the package-making industry evolve in the 17 years he and his brother have owned Cello-Pack. Graphics have become more sophisticated, and more players are vying for business, he said.

Gioia said the local plant generates good results, opening the door to additional investment.

"Without the great people we have, we wouldn't be able to expand and continue to grow here," Richard Gioia said.

Cello-Pack generates about $30 million to $35 million in annual sales, and expects to see that total rise to $40 million next year. The company also has its eye on more upgrades. A new pouch machine will be added in a couple of months, and over the longer range, it intends to add a second flexographic press.

Source

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