Smurfit Kappa has confirmed it is investing $22m to expand its corrugated plant in Culiacan, North-West Mexico. It demonstrates the company’s continued commitment to the Mexican market with expanded capacity, capabilities and products offerings for local customers in the fresh produce segment.
The investment will modernise and expand the plant, with the installation of a new 2.5m Fosber S/Line 370 corrugator (pictured below) and a flexo rotary die-cutter, and the construction of a new 10,900 sqm building. The company expects the site 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. This investment enables 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, 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, 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.”