Packaging firm Smurfit Kappa has announced that it is to invest over €25 million at its Pruszkow 'mega-plant' in central Poland.
The investment is part of the company's accelerated capital investment programme following a €660 million equity capital raise, which took place in November 2020.
The investment will help Smurfit Kappa double its output at the facility and result in the creation of 25 new jobs, taking the total number of staff at the location to more than 230.
Saverio Mayer, CEO for Smurfit Kappa Europe, said, "This significant investment marks Smurfit Kappa's strategic commitment to its presence in Poland and Eastern Europe.
"The Pruszkow plant is integral to our business, and this expansion will enable us to further meet the evolving needs of new and existing customers in key sectors, efficiently and sustainably."
The expansion project will see the facility spread across 37,500 square metres, making it the company's largest facility in Poland and one of Smurfit Kappa's largest in Europe.
The customer portfolio includes some of the leading brands in the FMCG food and beverage sectors and serves both international and local customers.
Construction is due to commence in July of this year and is expected to complete in 2022.
The company plans to install a new high-tech corrugator and converting equipment.
It will also add a finished goods (FG) warehouse that can store 12,000 pallets.
The expanded plant will reduce CO2 emissions by approximately 55 tonnes per annum.
Commenting on the announcement, CEO of Smurfit Kappa Poland, Jacek Nieweglowski, said, "This investment allows us to expand the range of high-value products that we offer to our growing customer base, enabling us to serve our customers better and improve our competitiveness.
"The expanded employment underscores our continued commitment to the local community, both as a valued and reputable regional employer since 1998."
© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.