Smurfit Kappa to expand Mexican assets
Irish packaging giant Smurfit Kappa is to boost production in Mexico by rebuilding a mill in the country that use equipment shipped from Europe. The machinery had previously been used at Smurfit Kappa mills in Spain and Germany.
Paper machine engineering group PMP said it's been hired by Smurfit Kappa to rebuild a 100,000 tonne recycled containerboard mill at the company's Los Reyes plant in Mexico.
Davy Stockbrokers noted that Smurfit Kappa is currently short of containerboard in the Mexican market.
"The reuse of these European machines whose closure has been previously announced achieves a twin positive of reducing capacity in Europe and adding capacity where it is required in the company's Americas operations," said Davy in a note yesterday. "It is also a very effective use of the group's asset base and another sign of the new ceo's strategy of increasing returns from the existing asset base."
Tony Smurfit is chief executive at Smurfit Kappa.