MEXICO (News release) -- Smurfit Kappa announced it is investing $22 million to expand its corrugated plant in Culiacan, North-West Mexico. It demonstrates the company's continued commitment to the Mexican market with expanded capacity, capabilities and products offerings for local customers in the fresh produce segment.

The investment will modernize and expand the plant, with the installation of high-tech state-of-the-art machinery and the construction of a new 10,900 square meter building that will include a new corrugator and an automatic Rotary Die Cutter (RDC) that will be fully operational by the end of 2021.

The facility will produce corrugated boxes made with a moisture barrier that helps resist condensation. These new offerings will also result in more sustainable operations at the facility with reduced use of paper that is 100% recyclable and can be reused at Smurfit Kappa mills.

The region is home to 40% of the total agricultural production for Mexico and has some of the largest producers of packaged food and beverages companies.

Commenting on the announcement, Jorge Angel, CEO of Smurfit Kappa Mexico, said: "Our Culiacan plant has for a long time been a significant employer in the region, and this will continue to be the case with this new investment, with a need for new operational and administrative roles, and the workforce at the plant expanding to over 300 employees."

"We have a strong customer base including some of the largest agricultural producers and FMCG companies in Mexico, and continuously investing in our facilities is paramount to providing the best possible service to customers and contributing to the growth of their businesses," Juan G. Castaneda, CEO of Smurfit Kappa The Americas, said.