Tredegar Film Products, a subsidiary of Tredegar Corporation (NYSE:TG), today announced plans to expand its manufacturing presence in Asia. The Company will invest $18 million in a new state-of-the-art extrusion line in Guangzhou, China that will be equipped with a high-performance clean room environment and inspection capabilities. The new extrusion line will be used to increase production of surface protection films to serve demand for Tredegar’s premium quality surface protection films used in the growing display market. By building a high-performance clean room environment and inspection capabilities, Tredegar will also be able to meet increasing requirements in the display industry for higher quality-control and standards. The extrusion line is expected to be fully operational by early 2015. “This investment will build upon our existing manufacturing capabilities in the region and support the growing demand for high performance displays and advanced materials used in the manufacture of these displays,” commented Bapi DasGupta, Vice President of Tredegar Film Products’ surface protection business unit. Double-digit demand for small devices such as tablets and smartphones, along with ongoing demand for larger displays, continues to fuel growth in the display market. “Tredegar has an innovative line of industry-leading products and we continue to see significant opportunity for the surface protection business unit,” added Mary Jane Hellyar, President of Tredegar Film Products. “By enhancing our local supply and service capabilities for our customer base in Asia, we are further positioning Tredegar to benefit from the positive consumer purchasing dynamics in the region.” Among the top global leaders in the plastic films industry, Tredegar Film Products manufactures plastic films, elastics and laminate materials for the personal care, electronic display, flexible packaging, lighting and other specialty film markets. With a global R&D structure and locations throughout North America, Europe, Asia, and South America, Tredegar Film Products provides local support and innovative solutions to meet our customers’ needs. Additional information regarding Tredegar Film Products is available at www.tredegarfilms.com.
Shareholders of Tredegar Corp. looking to boost their income beyond the stock's 1.6% annualized dividend yield can sell the June covered call at the $25 strike and collect the premium based on the 80 cents bid, which annualizes to an additional 8.5% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10.2% annualized rate in the scenario where the stock is not called away.