Smurfit Kappa announces $40 million expansion and modernisation of its paper sacks business in the Latin America.
In Colombia, a new Windmoller & Holscher paper sacks machine at its plant in Palmira is now fully operational. This, representing a $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 $10 million. Improved capability will continue in the 2Q 2021 with an investment of $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 $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.
