Paper and packaging company Smurfit Kappa has invested $23.5 million to upgrade its Nuevo Laredo sheet plant in Mexico and make it more sustainable.
The investment includes a new corrugator and an extension of the building.
The new machine, which began operating last week, will have the two-pronged benefits of reducing CO2 emissions by up to 40% and doubling production capacity.
The Nuevo Laredo plant is located in the Tamaulipas region in Northeastern Mexico.
The region represents 3.3% of the country's GDP and is home to over 200 companies which manufacture products for the US.
The company said the increased capacity will streamline Smurfit Kappa's operations in San Antonio, Texas where a fast-growing appetite for sustainable packaging is demanding larger production volumes.
It said the investment will also make significant inroads in the plant’s sustainability targets.
It said its CO2 emissions will be reduced by up to 40% due to significantly less transportation between Smurfit Kappa’s Nuevo Laredo and San Antonio plants.
"This investment reinforces our commitment to being an important player in the growth of the Mexican market," said Laurent Sellier, CEO of Smurfit Kappa the Americas.
"It will also strengthen our partnerships within the sectors that drive the local economy in the Nuevo Laredo region," he said.
This latest investment follows on from Smurfit Kappa's $22 million expansion of its Culiacan corrugated plant in Northwest Mexico last year.
