Smurfit Kappa has invested $23.5m in the upgrade of 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 new machine, which began operating last week, will double the plant's production capacity.
The increased capacity will streamline Smurfit Kappa’s operations in San Antonio, Texas where demand for sustainable packaging is growing fast.
The investment will also lead to a reduction in CO2 emissions by up to 40 per cent due to significantly less transportation between the Nuevo Laredo and San Antonio plants.
Eduardo Rubio, CEO of Smurfit Kappa North America, 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.”
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 per cent of the country’s GDP and is home to over 200 companies which manufacture products for the US.
This latest investment follows on from Smurfit Kappa’s $22m expansion of its Culiacan corrugated plant in Northwest Mexico last year.