Smurfit to invest $40m to modernise business in Latin America

Company plans to overhaul machinery in Colombia and Costa Rica

Smurfit Kappa is investing $40 million (€33 million) in its paper sacks business in Latin America, expanding and modernising its operations.

The company said it was making the investment in response to market trends and the need for environmentally sustainable paper sacks.

Among the planned work is the further modernisation of machinery in Colombia, with a new machine already installed at the Palmira facility and fully operational.

The $9.5 million investment has increased capacity at the plant by 100 million paper sacks per year, and improved quality. Smurfit plans to modernise sack paper machinery in Cali, Colombia, with a $19 million investment that will increase production capacity as well as the quality and performance of the sacks paper.


In Costa Rica, a $1 million investment is set to further improve the plant in San José. The company said a new flexographic printer is ready for installation there, which will optimise the printing offering of the plant.

“This unprecedented growth and modernisation plan in the region strengthens Smurfit Kappa’s value proposition for our paper sacks customers, who can trust us as a long-term ally that has a clear focus on innovation, efficiency, quality and superior performance, and will continue to support and accompany them in their growth and sustainability goals,” said Juan Castañeda, chief executive of Smurfit Kappa The Americas.

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist