US plastics compounder and distributor A. Schulman has added a new PET compounding unit at its Bornem masterbatch plant in Belgium.

While not disclosing either investment cost or capacity figures, the company said the additional capability will "significantly increase" output and reinforce its position as a supplier of masterbatches for the European food sector.

In its first phase, the new line will be dedicated primarily to the production of additive concentrates and white PET masterbatch.

"This investment is indeed aligned with current megatrends and addresses the needs of the packaging market," said Heinrich Lingnau, vice president and general manager Europe, Middle East and Africa.

Schulman markets its PET products under the "PolyPet" brand name.

In other news, the US company has launched a registered public offering of $110 million aggregate liquidation preference of Cumulative Perpetual Convertible Special Stock, subject to market and other conditions.

Schulman said it will grant the underwriters a 30-day option to purchase up to $15 million in additional shares. The company intends to use net proceeds from stock offering to fund a portion of the cash consideration to be paid in its proposed acquisition of HGGC Citadel Plastics Holdings and to pay transaction-related fees and expenses.