Smurfit Kappa, the Irish packaging giant, is planning a new plant in Morocco that will employ up to 300 Moroccans.
The 25,000-square-meter facility’s construction began this week. It will be operational in 2023 and will cost more than €35 million, according to Smurfit Kappa.
Local customers in the industrial, agriculture, food, automotive, pharmaceutical, and ceramics sectors will benefit from the plant.
In the first three months of the year, Smurfit Kappa’s core corrugated box business grew by 3.6 percent, with Europe rising by 3 percent and the Americas growing by 6 percent.
It comes following a global surge in internet purchasing, which has boosted demand for packaging around the world.
In the Moroccan market, demand for corrugated packaging now outnumbers supply, according to Smurfit Kappa.
The new plant, according to Smurfit Kappa Europe’s chief executive, is “the first of its sort owned by the company in Morocco.”
“It will be located in a region with high growth potential and will generate 300 direct and indirect jobs.
The plant is being built at the right time and in the right place, according to Edwin Goffard, chief operating officer of corrugated and converting for Smurfit Kappa Europe.
“Corrugated is in high demand, and buyers want to know that their products are being transported and exhibited in the most efficient and environmentally friendly manner possible.”
“We determine the optimum solution for the task at hand using the vast amount of data we’ve gathered from working with over 65,000 customers throughout the world.
Smurfit Kappa employs around 48,000 workers across 350 locations in 36 countries.
Revenues during the first three months of 2022 were up 33 percent to more than €3 billion, with a profitability of €514 million.
Despite rising material prices and worldwide inflation, the company reported increased margins of 17 percent for the first three months of the year, up from 16.6 percent in the last quarter of 2021.
Last year, Covid said that it has advanced its strategic ambitions. In 2020, it will seek €660 million in new stock to invest in new capacity in order to capitalize on the development of online commerce triggered by pandemic lockdowns
Argencraft, a corrugated plant in Buenos Aires, Argentina, was recently purchased by the company.
Smurfit Kappa declared its plan to leave the Russian market on April 1, as pressure built on international firms to cut connections with Moscow following its February invasion of Ukraine.