Pasadena, California-based Avery Dennison Corp. plans to build a plant for self-adhesive films and labels at Gotha, in the state of Thuringia, eastern Germany. The first construction stage, scheduled to be completed by 1998, will cost DM 60m. Total investment is projected to reach DM 164m. It will be one of the US company's largest such production facilities outside its home market. Fasson Deutschland GmbH (PO Box 1363, D-42757 Haan), German subsidiary of Avery's European offshoot, Fasson Nederland BV (PO Box 28, NL-2300 AA Leiden), will oversee the Thuringian launch. Fasson supplies the starting materials for industrial labels production.

With total sales of $ 3.1bn and net earnings of $ 225m, Avery Dennison manufactures adhesive tape, labels, office supplies and speciality chemicals. European production facilities are located in France, Germany, Luxembourg and the UK. The company said it chose the eastern German location because of its good transportation infrastructure, as well as the promise of investment aid and swift approval of construction plans.