Smurfit Kappa strengthens its paper sacks business in Latin America with USD $40 million investment
- New machine at Palmira, Colombia facility now fully operational
- New flexographic printer ready for installation at San Jose, Costa Rica plant
- Cali, Colombia sack paper machine to be modernised this year
Smurfit Kappa’s planned expansion and modernisation of its paper sacks business in the Latin American market continues at pace. As a global leader in paper-based packaging, Smurfit Kappa is investing USD $40 million in response to growing market trends and the increasing need for environmentally sustainable paper sacks. With this, and through the continued focus on innovative technology and design to improve resistance and functionality, the Company is demonstrating its on-going commitment to the paper sacks market and to its customers in The Americas.
In Colombia, a new Windmoller & Holscher paper sacks machine at its plant in Palmira is now fully operational. This, representing a USD $9.5 million investment, which was announced in February 2020, has increased the plant’s production capacity by an additional 100 million multi-ply paper sacks per year, as well as improving the print quality and performance of the sacks.
This new line complements the investment made by the Company in 2018, when it expanded its paper sacks plant in the Dominican Republic with an investment of USD $10 million. Improved capability will continue in the second quarter of 2021 with an investment of USD $1 million for the modernisation of Smurfit Kappa´s paper sacks plant in San Jose, Costa Rica. The acquisition of a state-of-the-art flexographic printer from the Italian brand Expert Group will optimise the printing offering of this plant to meet the growing demand for high resolution graphics in the market.
As an integrated manufacturer with its own forestry operation, recycling system and pulp production, the supply of paper is of vital importance for the Company. Consequently, it has also started a project to modernise and expand one of the paper machines at its facility in Cali, Colombia. This USD $19 million investment will be developed with global technology companies Voith Group and A.Celli Group. The project will increase production capacity, and the quality and performance of the sacks paper.
Juan G. Castañeda, CEO of Smurfit Kappa The Americas 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.”
Smurfit Kappa's paper sacks represent a sustainable, high-performance and innovative packaging solution for various markets, including construction, cement, chemical, food and agro-industrial sectors in Colombia, Ecuador, Peru, Central America, the Caribbean and Mexico.