Packaging firm Smurfit Kappa plans to invest $12 million (€11.1 million) in its Mexican plant at Tijuana.
The company has operated in Mexico since 1957 and has had a presence in the northern Baja California region for over 10 years.
The group has been increasing its production capacity in the country, and has invested over $350 million (€323 million) in its operations in the past five years.
The investment in its Tijuana plant will see the addition of new machinery and process upgrades, which it says will significantly increase both printing quality and efficiency.
'Growing Market'
“Mexico is an important market for Smurfit Kappa. We have invested substantial resources both in paper machines and corrugated plants while increasing our network to support the country’s economy and our customers’ needs," said Laurent Sellier, Smurfit Kappa CEO of the Americas.
“This important investment will lead us to increase capacity and productivity so we’re ready for the fast pace of our customers’ businesses. We will continue to invest as part of our firm commitment to Mexico and its growing market.”
Integrated Model
In April of this year, Smurfit Kappa reported a 1% decline in revenue in the first quarter of its financial year, to €2.99 billion, however EBITDA was 13% higher for the period.
The group said that its performance was driven by the 'continuing benefits of [its] integrated model', as well as effective capital spend, a continued focus on customer-led innovation, and its customer footprint.
The group reported EBITDA of €579 million for the period, with an EBITDA margin of 19.3%.
© 2023 European Supermarket Magazine – your source for the latest packaging news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.
