Smurfit Kappa invests US$22M in Mexican corrugated plant amid regional agri-food export boom
26 Aug 2021 --- Smurfit Kappa is investing US$22 million in the expansion of its corrugated plant in Culiacan, Mexico. The facility will produce corrugated boxes made with a moisture barrier that helps resist condensation.
The investment will modernize and expand the plant, installing “state-of-the-art” machinery and constructing a new 10,900 square meter building including a new corrugator and an automatic Rotary Die Cutter that will be fully operational by the end of 2021.
Speaking to PackagingInsights, Jorge Angel, CEO of Smurfit Kappa Mexico, explains the expansion marks an industry-driven environmental sustainability initiative where a lack of government policy is in place.
“Despite the fact that in the region, and even in the country, there are few restrictions against the use of unsustainable packaging solutions, the main commercial companies are moving to sustainable solutions at the request of their customers. As is the case of several retailers in the US, where we export our products.”
The company says the move is part of its continued commitment to the Mexican market, with expanded capacity, capabilities and product offerings for local customers in the fresh produce segment.
Smurfit Kappa is capitalizing on the boom in agri-food exports occurring in Mexico.Mexican demand
The expansion will enable 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 percent of the total agricultural production for Mexico and has some of the country’s largest producers of packaged F&B companies.
Innova Market Insights found strong support among Mexican consumers for cardboard, with 41 percent saying they find the recyclability to be “excellent.” A further 40 percent of respondents report a “good” level of product protection, and 44 percent value cardboard as “good” for ease of opening.
“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,” says Juan Castaneda, CEO of Smurfit Kappa The Americas.
“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.”
According to Smurfit Kappa, agri-food exports are recorded at US$22,365 million in Mexico during the first half of 2021, 10.6 percent higher than 2020.
“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.”
Smurfit Kappa expanding
This year, Smurfit Kappa also built a new facility in Northampton, UK, where a testing lab for e-commerce packaging was opened. The lab will seek to reduce product and packaging damage during transportation as a boom in online sales continues throughout the COVID-19 pandemic.
The announcement marked an expansion of Smurfit Kappa’s network of packaging testing labs and centers that help retailers and producers develop, test and launch “disruptive” packaging solutions for e-commerce.
By Louis Gore-Langton
