With the latest investment, the Culiacan facility is expected to meet the demand for sustainable packaging solutions from agriculture and fresh produce customers
Paper-based packaging firm Smurfit Kappa is set to invest $22m for the expansion of its corrugated facility in Culiacan, North-West Mexico.
Smurfit stated that the latest investment shows its continued commitment to the Mexican market with expanded capacity, capabilities and products offerings for local customers in the fresh produce segment.
The company will use the funds to modernise and expand the facility with the installation of advanced machinery.
Smurfit will also construct a new 10,900m² building, which will house a new corrugator and an automatic rotary die cutter (RDC) that will commence operations by the end of this year.
Smurfit Kappa Mexico CEO Jorge Angel 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.”
The firm will use the new facility for the production of corrugated boxes with a moisture barrier, which can prevent condensation.
The new offerings will help support more sustainable operations at the facility with reduced use of paper that is 100% recyclable and can be reused at Smurfit Kappa mills.
With the current investment, the Culiacan facility is expected to meet the demand for sustainable packaging solutions from agriculture and fresh produce customers.
Smurfit Kappa Americas CEO Juan Castaneda said: “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.”
Last month, Smurfit Kappa completed the acquisition of Mexico-based folding carton company Cartonbox.