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Chesapeake to Expand and Relocate North American Pharmaceutical Packaging Operation

RICHMOND, Va., Feb. 11 /PRNewswire-FirstCall/ -- Chesapeake Corporation (NYSE: CSK), a leading international manufacturer of value-added specialty paperboard packaging and the largest supplier of printed pharmaceutical leaflets in North America, today announced that it is expanding its pharmaceutical packaging operation on Long Island, N.Y., and relocating from its current location in Lake Success to nearby Hicksville.

"Our business has grown substantially since we moved to Lake Success just three years ago, and this move will facilitate further growth," said Robin Henfling, president of Chesapeake's pharmaceutical packaging business in North America. "We're only moving a few miles, but we will double the space available for manufacturing and for the administrative offices that serve all of our U.S. pharmaceutical packaging operations."

Chesapeake's pharmaceutical and healthcare packaging business supplies folding cartons, labels and leaflets to many of the world's leading pharmaceutical companies through its network of 25 dedicated pharmaceutical packaging plants across Europe, the United States and Asia. In addition to the Lake Success manufacturing operation and administrative offices, Chesapeake's North American operations also include plants in Raleigh, N.C., and Lexington, N.C.

"This expansion will substantially increase our capacity for pharmaceutical package leaflets in North America," said Michael Cheetham, Chesapeake's vice president - pharmaceutical and healthcare packaging. "We will be installing a new sheet-fed press and large-format folders in our new location prior to moving our existing Lake Success equipment. That will set the stage for a smooth transition into the new Hicksville plant."

A $175,000 capital grant from the state of New York's Empire State Development Corporation for job creation in Hicksville played a key role in the decision to locate the plant there, according to Henfling.

Chesapeake expects to complete the move from 7 Delaware Drive in Lake Success to 325 Duffy Avenue in Hicksville by the end of March 2008. All 140 current employees are expected to make the move. The new facility will have ISO9001:2000 certification and maintain the same Standard Operating Procedures (SOP's) and Good Manufacturing Practices (GMP's).

Prior to being acquired by Chesapeake Corporation in September 2005, the Lake Success operation traded as Arlington Press.

Chesapeake Corporation protects and promotes the world's great brands as a leading international supplier of value-added specialty paperboard and plastic packaging. Headquartered in Richmond, Va., the company is one of Europe's premier suppliers of folding cartons, leaflets and labels, as well as plastic packaging for niche markets. Chesapeake has 45 locations in Europe, North America, Africa and Asia and employs approximately 5,500 people worldwide.

SOURCE Chesapeake Corporation
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