Port Elizabeth, South Africa 11 April 2018 -- Mpact, one of the largest paper and plastic packaging manufacturers in southern Africa, today announced the official opening of its new corrugated factory in Port Elizabeth. The company held an on-site ribbon-cutting ceremony with customers, Mpact Directors and employees in attendance.
"The expansion extends Mpact Corrugated's national manufacturing footprint which enables us to consistently offer the highest levels of quality and service to our customers, many of whom are here to celebrate this milestone with us today," said Johan Stumpf, Mpact Corrugated Managing Director.
Stumpf added, "I am pleased we were able to deliver a complex project of this nature on time and within budget. The Mpact employees and our partners on the project worked hard to ensure this achievement."
Victor Korsten, CEO of Coega Dairy a long standing customer of Mpact, who was also in attendance at the opening commented, "Coega Dairy has been associated with Mpact in Port Elizabeth since its inception. Over the years Mpact has supported us with product development, innovation and supply chain management. So today it's a great pleasure to congratulate Mpact with its new facility and we look forward to a long relationship with the company."
Mpact's R150 million investment in Port Elizabeth is centered on a new state-of-the-art corrugator supplied by industry leading German machine supplier, BHS. The new machine more than doubles the factory's capacity while also improving quality, production efficiencies and key sustainability metrics such as energy usage. This is geared towards growth in demand for citrus packaging in the Eastern Cape on the back of substantial investments by Mpact's customers in the sector.
Gustav Bell, Packhouse Operations Manager of Endulini Fruit, one of Mpact's largest citrus customers said, "on behalf of the Endulini Group of Companies we want to congratulate you with the opening of your new upgraded state-of-the-art carton manufacturing facility. We trust this will contribute to the success and productivity of your business. Be assured that we highly value our relationship and foresee this for many years to come."
In the final phase of the project, Mpact will install a fully-integrated printing and converting machine as well as a flat-bed die-cutter. "This work is progressing well and is on schedule for completion during the second half of 2018" added Stumpf.
In the recent past Mpact has invested extensively in customer aligned strategic projects that position the Group well for growth. "Our capital investments across the Group such as the one here in Port Elizabeth, the recently commissioned R765 million Felixon paper mill project and the new R100 million jumbo bin injection-moulding machine are all geared towards ensuring our customers get the best quality products that are worth their price." said Bruce Strong, Mpact Group CEO.
As the largest recycler in South Africa, Mpact also epitomizes the circular economy, substantially reducing the amount of waste going to landfill each year. "Besides these projects we opened a new facility last year for recycling paperboard-based milk and juice cartons, an investment of R50 million. This goes hand-in-hand with our extensive paper recycling business and our PET bottle recycling plant which was commissioned in 2015 and today supplies recycled PET for use in new beverage bottles," added Strong.
The expansion of the Port Elizabeth plant is part of Mpact Corrugated's extensive modernisation programme which has included investments of more than R800 million over the past six years.
"As a true measure of sustainability it is worth noting that Mpact's Port Elizabeth factory has been in business for nearly 100 years. This investment demonstrates that we remain deeply committed to serving our customers in the Eastern Cape for many years to come," Strong concluded.
Mpact is one of the largest paper and plastics packaging businesses in southern Africa, with leading market positions in recovered paper collection, corrugated packaging, recycled-based cartonboard and containerboard, polyethylene-terephthalate ("PET") preforms and trays, recycled PET ("PET") and plastic jumbo bins. These market positions allow Mpact to meet the increasing requirements of its customers and achieve economies of scale and cost effectiveness at the various operations.
Mpact has 41 operating sites, of which 22 are manufacturing operations, in South Africa, Namibia, and Mozambique. Sales in South Africa account for approximately 89% of Mpact's total revenue for the current year while the balance was predominantly to customers in the rest of Africa.
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