Linpac is investing €8m in new extrusion and thermoforming capacity in Pravia, Spain, in a bid to cater to the growing demand for PET and rPET.
The move is in line with the fresh food packaging manufacturer's three-year plan to invest nearly €14.3m in Linpac Spain by 2018.
The investment will involve the installation of a fourth extruder at the Pravia site to increase food packaging manufacturing capacity by 25%.
This will increase the site's annual production to 630 million trays and enable the supply of lighter, more cost-effective and sustainable products, the company said.
Linpac Southern Europe managing director Ricardo Cabeza said: "The new extruder will extend our capabilities and enable us to offer a wider variety of products to customers, ensuring they receive the best packaging for their application."
With the installation of thermoforming capacity, the company will meet demand from retailers and packers across Europe for PET and rPET. These are used as food packaging material due to its versatility, barrier and food safety properties, as well as its recyclability.
Cabeza added: "This investment will help to increase capacity, quality assurance and delivery of innovation, as well as greater flexibility in meeting customer needs for high-quality products, which address their environmental concerns.
"This investment will secure our future in the region as a leading innovator in the European fresh food packaging market."
In February, Linpac launched new trays with various label panel designs to help retailers maximise shelf appeal.
The trays are part of the company's Rfresh Evolve rigid vacuum skin packaging range, which allow pack information to be displayed separately to the product.
Image: Linpac invests in its food packaging manufacturing site located in Pravia, Spain. Photo: courtesy of LINPAC Senior Holdings.