Elopak has announced plans to build its first U.S. production plant with the latest state-of-the-art technology for better and more efficient production. The plant will produce Pure-Pak® cartons for liquid dairy, juices, plant-based products and liquid eggs. The new production facility will be located in Little Rock, Arkansas and is expected to start production in H1, 2025.
It represents a significant investment for the region of around USD 70 million including the land, the building and the equipment.
Following the investment announcement in June 2023, the company has evaluated different financing opportunities and concluded to own and fully finance the plant on the balance sheet. Hence, the nominal cost of the investment will be recognized in the balance sheet instead of the discounted value of the lease payments, increasing the reported investment by around USD 15 million. This is economically more profitable for Elopak compared to partly leasing, which was assumed in June. Further, around USD 5 million is added to the investment to further optimize the scope of the project and support further long term growth.
Since the announcement in June, we have signed contracts with some of our existing customers in the region, further strengthening the investment case.
The new plant will create more than 100 permanent jobs in the region for engineers, printers, operators, logistics specialists and other support groups.
"This is our first converting plant in the U.S. and a landmark investment for our company. North America is a key building block for our future growth and we are very excited to expand our presence in the region. I would like to thank all parties involved for enabling the next step in our North American growth journey"
Thomas Körmendi, CEO
About Elopak
Elopak is a leading global supplier of carton packaging and filling equipment. The company's iconic Pure-Pak® cartons are made using renewable, recyclable and sustainably sourced materials, providing a natural and convenient alternative to plastic bottles that fits within a low carbon circular economy.
Founded in Norway in 1957, Elopak was listed on the Oslo Stock Exchange in 2021. Today it employs 2,600 people and sells in excess of 14 billion cartons annually across more than 70 countries.
Elopak' s current operations in North America include a technical facility in Wixom, Michigan, as well as several converting facilities in Canada, Mexico, and the Dominican Republic.
Elopak is a UN Global Compact participant member. We have set Science Based Targets to reduce emissions in line with the 1.5 degree trajectory, and aim to be Net-Zero by 2050.
#pulpandpaper
|
