US-based WestRock is planning to build a new corrugated box plant in Sao Paulo, Brazil, in order to serve its customers in South America.
The new plant will be situated in Porto Feliz and cater to multiple industry segments in the region, as well as other growing areas in the south-east region of Brazil.
The construction of the plant is expected to begin later this year and scheduled to be completed in mid-2019.
WestRock CEO Steve Voorhees said: “WestRock’s corrugated packaging business in Brazil continues to perform well, with strong relationships with customers in attractive growth markets.
“Our new corrugated packaging plant will enable our exceptional team in Brazil to serve these customers even better in the future, with a state-of-the-art manufacturing facility that will provide new capabilities and efficiencies for our customers, and to further integrate the containerboard that we manufacture in Brazil.”
After completion, the new plant is expected to substitute WestRock’s existing Brazilian corrugated operations in Valinhos.
The company plans to integrate the Porto Feliz facility with the forestry and paper production operations of the Três Barras (Santa Catarina) mill that produces virgin fibre HyPerform corrugated paper, a high-performance paper line.
Last month, the company acquired Australian folding cartons provider Hanna Group (Hannapak) for A$75m ($60m), subject to a customary net working capital adjustment.
The acquisition is expected to strengthen WestRock’s packaging business in the region.