Smurfit Kappa has announced that it is investing $22 million to expand facilities at its corrugated plant in Culiacan, North-West Mexico.
The move demonstrates the company’s continued commitment to the Mexican market with expanded capacity, capabilities, and product offering for local customers in the fresh produce segment.
The investment is expected to modernise and expand the plant, with the installation of high-tech machinery and the construction of a new 10,900 square metres building that will include a new corrugator and an automatic Rotary Die Cutter (RDC) that the group hopes will be fully operational by the end of 2021.
The facility will produce corrugated boxes made with a moisture barrier that helps resist condensation.
These new offerings will also result in more sustainable operations at the facility with reduced use of paper that is 100% recyclable and can be reused at Smurfit Kappa mills.
The investment will enable the Culiacan plant to match the fast-growing demand for sustainable packaging solutions from agriculture and fresh produce customers.
The region is home to 40% of the total agricultural production for Mexico and has some of the largest producers of packaged food and beverages companies.
Commenting on the announcement, Jorge Angel, CEO of Smurfit Kappa Mexico, said, "Our Culiacan plant has for a long time been a significant employer in the region, and this will continue to be the case with this new investment, with a need for new operational and administrative roles, and the workforce at the plant expanding to over 300 employees."
Juan G Castaneda, CEO of Smurfit Kappa The Americas, said, "This investment will enable us to meet the increasing demand for innovative and sustainable packaging solutions not only in the region but also across Mexico.
"We have a strong customer base including some of the largest agricultural producers and FMCG companies in Mexico, and continuously investing in our facilities is paramount to providing the best possible service to customers and contributing to the growth of their businesses."