SIG to build US$48m plant in Mexico to support continued growth in North America

MEXICO – Switzerland-based aseptic carton packaging manufacturer, SIG Combibloc, has announced that it will invest around €40 million (about US$48 million) to construct a new production plant in Queretaro, Mexico.

This is in an effort to support the company’s continued growth in North America. The facility is expected to open in the first quarter of 2023, creating around 200 jobs.

It will particularly enable the company to establish “state-of-the-art” production capabilities for the printing, cutting and finishing of carton packs.

SIG says the new facility will also bring it closer to its customers, enabling it to forge strong relationships with major dairies in Mexico, and also connect it with a well-established co-manufacturing customer base in the US.

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“We are very excited to announce this project, which will enable us to serve our North American customers faster and more efficiently,” said Ricardo Rodriguez, SIG president and general manager Americas.

Rodrigues further notes that with the new facility, delivery lead times will be reduced and the company will be able to respond rapidly to changes in demand.

“Our new plant will further drive growth in the region while demonstrating our commitment to the highest environmental standards,” he added.

SIG Combibloc recently agreed to acquire the remaining 50% stake in its Middle East and Africa joint venture, SIG Combibloc Obeikan, taking its ownership of the carton packaging and filling machine supplier to 100%.

Meanwhile, SIG is said to have received an expression of interest from a buyer for its Whakatane Mill in New Zealand.

The company had the mill on the market for two years and had confirmed last month that it would close at the end of June, after failing to find a suitable buyer for the facility.

A glimmer of hope seems to be creeping in at the Whakatane facility whose close would have put 210 employees out of work.

A spokesperson for Sig says there is little to report as discussions are still at an early stage and that closure is still “a very real prospect and steps to work through the wind-down process will continue unless a binding deal is reached”.

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