Smurfit Kappa has invested USD 23.5 million to upgrade its Nuevo Laredo sheet plant in Mexico to become a fully integrated corrugated plant. The investment includes a state-of-the-art corrugator and extension of the building.
The Nuevo Laredo plant is located in the Tamaulipas region in Northeastern Mexico where Smurfit Kappa has strong partnerships in the industrial, electrical appliances and electronics sectors. The region represents 3.3% of the country's GDP and is home to over 200 companies which manufacture products for the US.
"This investment reinforces our commitment to being an important player in the growth of the Mexican market," said Laurent Sellier, CEO of Smurfit Kappa the Americas. "It will also strengthen our partnerships within the sectors that drive the local economy in the Nuevo Laredo region."
The new machine, which began operating last week, will have the two-pronged benefits of reducing CO2 emissions by up to 40% and doubling production capacity.
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.
This latest investment follows on from Smurfit Kappa's USD 22 million expansion of its Culiacan corrugated plant in Northwest Mexico last year.
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