Smurfit Kappa has invested $23.5m to transform its sheet plant in Nuevo Laredo, Mexico, into a fully integrated corrugated plant.

As part of the upgrade, the company added an advanced corrugator, which started operating last week.

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The new machine will double the production capacity, addressing the fast-growing demand for sustainable packaging in San Antonio, Texas.

CO₂ emissions will be reduced by up to 40%, due to less transportation between the company’s plants in Nuevo Laredo and San Antonio.

In addition, Smurfit Kappa will be investing to extend the building.

Smurfit Kappa North America CEO Eduardo Rubio said: “The enhanced production capacity we now have because of this investment has strengthened our ability to meet the needs of current, and indeed potential, customers in the region.

“Smurfit Kappa is a reliable source of high-performance, sustainable packaging, no matter how complex the product or supply chain requirements are.”

Smurfit Kappa’s Nuevo Laredo plant is located in the Tamaulipas region in Northeastern Mexico, where it has partnerships in the industrial, electrical appliances, and electronics sectors.

The investment comes after the company announced the expansion of its Culiacan corrugated plant in Northwest Mexico, with a $22m investment, last year.

Smurfit Kappa the Americas CEO Laurent Sellier said: “This investment reinforces our commitment to being an important player in the growth of the Mexican market. It will also strengthen our partnerships within the sectors that drive the local economy in the Nuevo Laredo region.”

In January this year, Smurfit Kappa announced it will expand the production capacity of its plant in Fortaleza, Brazil.