Global corrugated packaging company Smurfit Kappa has entered into agreement to acquire Brazilian packaging plant, PaperBox.

Located in Saquarema, 70km east of Rio de Janeiro, the 50,000m² high-tech industrial park has its own logistics fleet.

The deal is subject to the approval of regulatory bodies and expected to complete by the end of next month.

Financial terms of the transaction have not been disclosed.

Smurfit Kappa Brazil CEO Manuel Alcalá said: “PaperBox has a distinguished history in the region and a special commitment to all stakeholders. This is a legacy that Smurfit Kappa will build upon.”

Brazil, which is one of the largest corrugated cardboard markets in Latin America, records 7.4 bn m2 in annual production.

The country’s Southeast region, where PaperBox is located, produces 46% of this total volume.

The acquisition will expand Smurfit Kappa’s footprint in Brazil and its product portfolio.

In addition to Saquarema, Smurfit Kappa already operates in three other states including Minas Gerais, Rio Grande do Sul and Ceará.

Smurfit Kappa Americas CEO Laurent Sellier said: “We are very proud to expand our footprint in Brazil to meet the growing demand for innovative and sustainable packaging.

“This acquisition will broaden and strengthen our presence in the country, improve our production capabilities and enable us to continue to create new opportunities and form new partnerships with customers.”

In May this year, Smurfit Kappa announced investment of €35m ($37.3m) to build a packaging plant in Morocco.