The investment will assist the company in the planned expansion and modernisation of its paper sacks business in the region

sack machine

Smurfit Kappa strengthens its Latin American paper sacks business with $40m investment. (Credit: Smurfit Kappa)

Paper-based packaging company Smurfit Kappa has announced an investment of $40m to strengthen its paper sacks business in Latin America.

The investment will support the company in the planned expansion and modernisation of its paper sacks business in the Latin American market.

Smurfit Kappa has already invested $9.5m to install new Windmoller & Holscher paper sacks machine at its Palmira plant in Colombia.

The machine, which is fully operational, allowed the company to increase the plant’s production capacity by an additional 100 million multi-ply paper sacks per year. It also enabled to improve the print quality and performance of the sacks.

Smurfit also invested $10m to expand the capabilities of its paper sacks plant in the Dominican Republic.

The company will continue its efforts in the second quarter of this year with an investment of $1m to modernise its paper sacks plant in San Jose, Costa Rica.

Italian brand Expert Group’s advanced flexographic printer will also enhance the printing offering of San Jose facility to meet its demand for high-resolution graphics in the market.

Smurfit has also commenced a project to modernise and expand one of the paper machines at its Cali facility in Colombia.

Global technology companies Voith Group and A.Celli Group are working on this project to increase production capacity, as well as the quality and performance of the sacks paper.

Smurfit Kappa Americas CEO Juan Castañeda said: “This unprecedented growth and modernisation plan in the region strengthens Smurfit Kappa’s value proposition for our paper sacks customers, who can trust us as a long-term ally, that has a clear focus on innovation, efficiency, quality and superior performance, and will continue to support and accompany them in their growth and sustainability goals.”

In December last year, Smurfit Kappa launched a new German company called Recycling Dual GmbH to offer integrated licencing service for recycling in the region.