DUBLIN (News release) -- Smurfit Kappa has invested USD23.5 million to upgrade its Nuevo Laredo sheet plant in Mexico to become a fully integrated corrugated plant. The investment includes a state-of-the-art corrugator and 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 where Smurfit Kappa has strong partnerships in the industrial, electrical appliances and electronics sectors. The region represents 3.3% of the country's GDP and is home to over 200 companies which manufacture products for the US.

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.

The investment will also make significant inroads in the plant's ambitious sustainability targets. 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.

Speaking about the investment, Laurent Sellier, CEO of Smurfit Kappa the Americas, said: "This investment reinforces our commitment to being an important player in the growth of the Mexican market. It will also strengthen our partnerships within the sectors that drive the local economy in the Nuevo Laredo region."

Eduardo Rubio, CEO of Smurfit Kappa North America, added: "The enhanced production capacity we now have because of this investment has strengthened our ability to meet the needs of current and indeed potential customers in the region. Smurfit Kappa is a reliable source of high-performance, sustainable packaging, no matter how complex the product or supply chain requirements are."

This latest investment follows on from Smurfit Kappa's USD22 million expansion of its Culiacan corrugated plant in Northwest Mexico last year.