Smurfit Kappa has invested $23.5 million in upgrading its Nuevo Laredo sheet plant, in Mexico, to become a fully integrated corrugated plant.
The corrugated packaging company noted that the investment includes a state-of-the-art corrugator and an extension of the building.
The new machine, which began operating last week, will have the two benefits of reducing CO2 emissions by up to 40% and doubling production capacity.
The Nuevo Laredo plant is located in the Tamaulipas region, in north-eastern Mexico, where Smurfit Kappa has strong partnerships in the industrial and electronics sectors.
The region represents 3.3% of the country’s GDP and is home to over 200 companies that manufacture products for the US.
Speaking about the investment, Laurent Sellier, CEO of Smurfit Kappa the Americas, said, “This investment reinforces our commitment to being an important player in the growth of the Mexican market.
“It will also strengthen our partnerships within the sectors that drive the local economy in the Nuevo Laredo region.”
The increased capacity will streamline Smurfit Kappa’s operations in San Antonio, Texas, where a fast-growing appetite for sustainable packaging is demanding larger production volumes.
The investment will also make significant inroads into the plant’s ambitious sustainability targets. Its CO2 emissions will be reduced by up to 40% due to significantly less transportation between Smurfit Kappa’s Nuevo Laredo and San Antonio plants.
Eduardo Rubio, CEO of Smurfit Kappa North America, added, “The enhanced production capacity we now have because of this investment has strengthened our ability to meet the needs of current, and indeed potential, customers in the region.
“Smurfit Kappa is a reliable source of high-performance sustainable packaging, no matter how complex the product or supply chain requirements are.”
This latest investment follows on from Smurfit Kappa’s $22 million expansion of its Culiacan corrugated plant, in north-western Mexico, last year.
Read More: Smurfit Kappa Acquires Operations In Mexico