The investment, which saw the installation of a new corrugator and the expansion of the building, will help double the production capacity and reduce CO2 emissions by up to 40%

Corrugadora-MX

The Nuevo Laredo plant is located in the Tamaulipas region in North-eastern Mexico. (Credit: Smurfit Kappa)

Irish corrugated packaging firm Smurfit Kappa has invested $23.5m to convert its Nuevo Laredo sheet plant in Mexico into a fully-integrated corrugated plant.

The investment saw the installation of a new corrugator and the expansion of the building.

The new machine, which began operation recently, will help double the production capacity and reduce CO2 emissions by up to 40%.

Smurfit Kappa said that the Nuevo Laredo plant is located in the Tamaulipas region in Northeastern Mexico where the packaging firm has partnerships in the industrial, electrical appliances and electronics sectors.

The increased capacity will support the company in optimising its operations in San Antonio, Texas where there is significant demand for sustainable packaging.

Smurfit Kappa the Americas CEO Laurent Sellier said: “This investment reinforces our commitment to being an important player in the growth of the Mexican market. It will also strengthen our partnerships within the sectors that drive the local economy in the Nuevo Laredo region.”

Smurfit Kappa said that the investment will also make significant inroads in the plant’s sustainability targets.

Furthermore, CO2 emissions will be reduced by up to 40% due to less transportation between the company’s Nuevo Laredo and San Antonio facilities.

Smurfit Kappa North America CEO Eduardo Rubio said: “The enhanced production capacity we now have because of this investment has strengthened our ability to meet the needs of current and indeed potential customers in the region.

“Smurfit Kappa is a reliable source of high-performance, sustainable packaging, no matter how complex the product or supply chain requirements are.”

The latest investment comes after the company’s $22m expansion of its Culiacan corrugated plant in Northwest Mexico in 2021.