Smurfit Kappa continues Latin American expansion with PaperBox acquisition in Brazil
20 Sep 2022 --- Smurfit Kappa is acquiring the Brazilian packaging plant, PaperBox. PaperBox is one of a few expansions the company has been making in Brazil to capitalize on market demand.
PaperBox is located in Saquarema, 70 kilometers east of Rio de Janeiro. “Smurfit Kappa believes in Brazil and in the opportunities to deliver growth by continuing to add value to our customers’ business,” states Manuel Alcalá, chief executive at Smurfit Kappa in Brazil.
Smurfit Kappa will finalize the transaction at the end of October after approval by regulatory bodies. The paper packaging giant acquired PaperBox for an undisclosed sum, similar to many of its other procurements.
Smurfit Kappa buys Brazilian PaperBox company to continue its expansion across Latin America. Brazilian cardboard boom
Brazil is the largest corrugated cardboard market in Latin America. Around 7.5 billion square meters of corrugated cardboard is produced in the region annually. Southeast Latin America, where PaperBox is located, makes 46% of that total volume.
Smurfit Kappa recently launched corrugated cardboard insulation packs in collaboration with UK recipe box company Mindful Chef.
Gaining PaperBox represents a further expansion for Smurfit Kappa. It has expanded its operational footprint in Brazil over the past few years and operates in three other states: Minas Gerais, Rio Grande do Sul and Ceará.
“This acquisition will broaden and strengthen our presence in the country, improve our production capabilities and enable us to continue to create new opportunities and form new partnerships with customers,” says Laurent Sellier, chief executive at Smurfit Kappa in the Americas.
Earlier this year, it invested US$33 million in the expansion of its Fortaleza production site in Northeastern Brazil. Smurfit Kappa is trying to meet the growing demand for innovative and environmentally sustainable packaging in the region.
Expanding presence
Smurfit Kappa has been on a streak of attaining companies worldwide. Its most recent acquisition before PaperBox was Atlas Packaging, based in Barnstaple, North Devon. Smurfit Kappa UK Limited (SKUK), a subsidiary of Smurfit Kappa, gained the company to expand its UK presence, which maintains operations throughout the UK.
Previously, the company bought Argencraft in Buenos Aires, Argentina, Cartonbox in Mexico, Cartones del Pacifico in Peru and more, all between 2021 and 2022 and for undisclosed amounts of money.
The acquisitions show an increasing presence for the company, in not only Brazil but in Latin America in general. The food packaging market in Latin America is predicted to be valued at US$42.82 million before the end of 2026, while the flexible packaging industry has an anticipated CAGR of 4.31%.
Edited By Sabine Waldeck
