Smurfit Kappa to invest $22m in Mexican plant

Packaging specialist Smurfit Kappa is to invest $22 million (€18.75 million) in its corrugated plant in northwest Mexico.

The investment will help the plant keep pace with demand for sustainable packaging solutions from agriculture and fresh produce customers. The facility will produce corrugated boxes with a moisture barrier that helps resist condensation.

It will see the Culiacan plant modernised and expanded. A new 10,900sq m (117,326sq ft) building will be constructed to accommodate a new corrugator and an automatic rotary die cutter. The new facility is expected to be operational by the end of the year.

"Our Culiacan plant has for a long time been a significant employer in the region, and this will continue with this new investment," said Jorge Angel, chief executive of Smurfit Kappa Mexico, which says it will employ more than 300 people on site after the expansion.

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Some of the largest producers of packaged food and beverages are based in the region, with 40 per cent of Mexico’s agricultural output produced there.

"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," said Juan Castaneda, chief executive of Smurfit Kappa The Americas.

“We have a strong customer base including some of the largest agricultural producers and FMCG [fast-moving consumer goods] 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.”