Jabil Inc. announced expansion plans for its newly acquired paper bottle technology with a $25 million investment in subsidiary Ecologic's Manteca, California, location and the buildout of a new paper bottle plant in its Sustainability Center of Excellence in Tortosa, Spain. This expansion will create the first paper-based scaled technology in the market, as Jabil delivers Ecologic's innovative pulp molding capabilities to new geographies and enables production of hundreds of millions of new paper packages.
Jabil acquired Ecologic Brands, a provider of sustainable packaging specializing in paper bottle and paper-based packaging solutions, in January 2021.
Jabil is making this investment in response to significant consumer packaged goods (CPG) market demand. According to Euromonitor, consumers reported that they are three times more likely to prefer paper-based packaging over alternatives that leverage metal or plastic.
"As consumers become more informed about the environmental impact of plastic waste, they are looking for new, sustainable packaging solutions such as paper. The challenge for packaging providers is the ability to scale production to meet this demand," said Jason Paladino, senior vice president of Jabil and CEO of Jabil Packaging Solutions. "The expansion of these two facilities will result in a significant increase in packaging capacity for the North American and European markets, helping CPG brands in pursuit of challenging sustainability goals."
Jabil's global investment includes a footprint expansion, as well as the delivery of new equipment and automation, unlocking tremendous potential for CPG brands. This investment accelerates the maturation of paper packaging in commercial settings, from niche application to global brand scale.
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