Irish packaging giant Smurfit Kappa has invested $23.5m (€21.9m) to upgrade its sheet plant in Nuevo Laredo in the north-east of Mexico.
The investment, which aims to make the location more sustainable, includes a new corrugator, a machine that will double production capacity. Smurfit Kappa has also completed an extension of the building.
The group reports that the investment in the Nuevo Laredo location will reduce the plant’s carbon dioxide emissions by up to 40pc. The group estimates that the increased production volumes at the Nuevo Laredo plant will reduce transportation between Mexico and the group’s plant in San Antonio, Texas.
The increased capacity will also streamline the company’s operations in Texas where Smurfit Kappa has recorded an increase in demand for sustainable packaging.
Last year, Smurfit Kappa also invested a further $22m (€20.5m) to expand its corrugated plant in Culiacan in north-west Mexico. It also acquired folding carton company Cartonbox in the country last July.
Laurent Sellier, chief executive of Smurfit Kappa the Americas, said the investment “will also strengthen our partnerships within the sectors that drive the local economy in the Nuevo Laredo region”.
Smurfit Kappa has approximately 48,000 employees across 36 countries. The company recorded revenues of €10.1bn last year.