US custom moulder SPM (325 E. Corondo Street, Anaheim, CA 92806 / USA) is to build a GBP 5m plastics injection moulding plant at Cwm Cynon in South Wales / Great Britain. The investment marks the firm's first move into Europe and is part of a global expansion strategy in plastics by its parent company Dynacast International (Precision House, Arden Road, Alcester, GB-Warwicks B49 6HN) which acquired SPM last year. Dynacast is a subsidiary of Coats Viyella (28 Savile Row, GB-London W1X 2DD), the British textiles company.

The plant, which is expected to be operational by the beginning of 1997, is initially being set up to supply the South Wales plant of Nortel, the Canadian telecommunications giant. In North America the company also manufactures for other leading OEMs in the computer, telectronics and automotive sectors. Although the initial investment will be primarily in conventional injection moulding production techniques, the company plans to quickly expand its capability to produce high precision, high technology products and intends to establish a position as one of Europe's leading plastic engineering companies. A spokesman told Plasteurope.com that further investments can be expected in Europe, either through greenfield investment or acquisition.