Construction BUSINESS

Smurfit Kappa, a leading packaging company, is gearing up to invest €54 million in doubling the capacity of its bag-in-box plant in Alicante, Spain. The facility specializes in producing packaging solutions for various products, including wine, dairy items, liquid eggs, cooking oils, and water.

As part of this expansion initiative, the investment will not only increase the plant’s capacity but will also introduce advanced waste management systems. The packaging giant aims to enhance sustainability by implementing measures to reduce energy consumption within the factory. The Alicante plant has already incorporated several recycling systems for identifying and segregating by-products.

This strategic move is expected to bring about positive economic impact as the Irish group anticipates the creation of 200 new jobs at the plant. Smurfit Kappa Europe’s CEO, Saverio Mayer, emphasized the company’s dedication to the bag-in-box division and highlighted this investment as a key element of their broader, multi-country expansion plan. Mayer noted that the company had previously invested €90 million in the plant over the past decade, significantly enhancing its capabilities.

In 2022, Smurfit Kappa allocated €22 million for upgrades to a sheet plant in Mexico and revealed plans for a new facility in Morocco. With a global workforce exceeding 47,000 across 36 countries, the company continues to demonstrate its commitment to growth and innovation.

Despite reporting €1.6 billion in earnings before interest, taxation, depreciation, and amortization (EBITDA) for the first nine months of 2023 – a 12% decrease from the corresponding period in 2022 – Smurfit Kappa generated revenues of €8.5 billion. Notably, the group achieved improved margins of 19%, up from 18.2% in the same period last year.

Looking ahead, Smurfit Kappa’s proposed merger with US firm WestRock, announced in September, is on track to close in the second quarter of 2024, pending shareholder and regulatory approvals.