Multinational packaging supplier Nexgen Packaging has made strategic investments to strengthen its production capabilities in Latin America.
The company opened a production facility in Querétaro City, Mexico, this month, which will manufacture packaging solutions for retailers in Mexico, Central America and the US.
The team at the facility has experience in printed tags and labels, radio frequency identification (RFID) solutions and sustainable solutions for the retail industry.
This investment comes after Nexgen acquired the majority of assets of Guatemala-based company Imprimelo last month.
The acquisition is intended to allow Nexgen to expand its print and RFID capabilities to meet the requirements of customers in Central America.
These expansions will enable Nexgen to address the increasing demand from retailers and manufacturers, as well as allow its customers to take advantage of trade agreements between the US, Canada, Mexico and Central America.
Nexgen co-CEO Jim Welch said: “Our customers in the US and Europe are aggressively pursuing nearshoring and onshoring manufacturing strategies in response to the supply chain challenges the retail industry is experiencing.
“Nexgen has always pursued the strategy of investing in production facilities close to our customers’ points of manufacturing and these investments in Mexico and Guatemala reflect our commitment to meeting our customers’ supply chain needs.
“We are proud of our teams in Latin America and excited about the opportunities this will create for Nexgen and our customers.”
Nexgen supplies packaging for the retail, apparel and footwear industries, operating 17 production facilities worldwide.
The company has also expanded its manufacturing capabilities in Indonesia, India, Ethiopia and Spain over the past three years.
It operates head offices in China, the US and Spain.
Last February, Irish packaging company Smurfit Kappa invested $40m in its paper sacks business in Latin America to meet the demand for environmentally sustainable paper sacks.