Smurfit Kappa expands in Mexico after record breaking year
Package solutions supplier Smurfit Kappa reported a record year in 2016 for its Mexican operations, which saw a 6% increase in its corrugated volumes. The company is currently completing an investment in a plant in Mexico City to support domestic demand.
“We’ve a large Mexican domestic business which has been performing really well,” said the Irish packaging group’s CEO, Tony Smurfit, pointing out that with a 120 million population (twice as UK), the Mexican market is very strong by itself.
Concerning U.S. President Donald Trump’s policies on trade, the official said that geopolitical events have little impact on where the company deploys capital or makes acquisitions, as long as it can generate a strong return for shareholders.
Reporting full-year results yesterday, Smurfit Kappa said its earnings before interest, tax, depreciation and amortization (EBITDA) rose 5% to US$ 1.54 billion, and slipped 2% in the fourth quarter to US$ 399 million.
Smurfit Kappa operates 24 locations in Mexico, including production sites and distribution centers.