Smurfit Kappa invests $22m in Mexican operations

European packaging company Smurfit Kappa has announced that it will invest $22 million to expand its corrugated packaging plant in Culican, northwest Mexico. 

The investment demonstrates the company’s commitment to the Mexican market and will enable Smurfit Kappa to modernise and expand its capabilities, capacity and product offering for local customers in the fresh produce sector. 

Smurfit Kappa will instal state-of-the-art machinery and construct a 10,900m2 building that will include a new corrugator and an automatic rotary die cutter (RDC), which is expected to be fully operational by 2021. 

The new site will enable Smurfit Kappa to produce corrugated boxes “made with a moisture barrier that helps resist condensation,” a company statement said.

The new investment will also result in more sustainable operations at the new plant, with reduced use of paper that is 100% recyclable and reuseable at the company’s mills. 

“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,” said Jorge Angel, CEO of Smurfit Kappa Mexico.

Juan G Castaneda, CEO of Smurfit Kappa The Americas, added: “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”.