Paper and packaging giant Smurfit Kappa is investing $40m in its paper sacks business in the Latin American market in response to growing market trends and the increasing need for environmentally sustainable paper sacks.
Smurfit Kappa said that in Colombia, a new Windmoller & Holscher paper sacks machine at its plant in Palmira is now fully operational.
This $9.5m investment, which was announced last February, 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 $10m.
The company said that improved capability will continue in the second quarter of 2021 with an investment of $1m for the modernisation of its paper sacks plant in San Jose, Costa Rica.
Smurfit Kappa said that as an integrated manufacturer with its own forestry operation, recycling system and pulp production, the supply of paper is of vital importance for it.
To this end, it has also started a project to modernise and expand one of the paper machines at its facility in Cali in Colombia. This $19m investment will be developed with global technology companies Voith Group and A.Celli Group.
It said the project will increase production capacity, and the quality and performance of the sacks paper.
