Cascades Inc. announced that it is exercising its option to purchase the interest of the Caisse de dépôt et placement du Québec in Greenpac Holding LLC. CDPQ owns a 20.2% interest in Greenpac, a state-of-the-art lightweight containerboard mill, located in Niagara Falls, NY . The expected purchase price is approximately US$93 million. The transaction is expected to close January 3rd, 2020. As of today, Cascades owns a 66.1% interest in Greenpac, a joint venture created in partnership with CDPQ, Jamestown Container Companies and Containerboard Partners.
Smurfit Kappa is substantially expanding its converting capacity at four manufacturing plants across the Czech Republic and Slovakia with a significant €20 million investment. The investment further highlights Smurfit Kappa’s commitment to its customers and operations in Eastern Europe.
The investment consists of four major projects, three undertaken in the Czech Republic, at Smurfit Kappa facilities in Žebrák, Žimrovice, and Olomouc, and one in Slovakia at Smurfit Kappa Štúrovo. All four projects are expected to be completed by the end of this year.
Commenting on the announcement, Edwin Goffard, COO of Smurfit Kappa Europe Corrugated said: “This significant investment by Smurfit Kappa marks a commitment in further developing our presence in Eastern Europe. From both a product and geographical perspective, Smurfit Kappa Czech Republic and Slovakia are excellently positioned to serve an evolving and ever-growing market, and this investment will support further growth of the business.”
The investment will see the installation of new converting equipment which will increase capacity by over 100 million regular and offset printed boxes per annum. The new state-of-the art equipment will enable the plants to meet their respective increasing customer demand for sustainable, paper-based packaging, and to deliver high quality packaging solutions on a consistent basis. The investment also adds the opportunity to bring the employees an even safer and more ergonomic workplace.
Zdenek Suchitra, CEO of Smurfit Kappa Czech Republic and Slovakia said: “We are delighted to see the continued growth and success of our customers here in the Czech Republic, Slovakia and Hungary. This new investment ensures we are excellently equipped to satisfy a wide variety of customer needs and to continue delivering our high quality solutions, as well as best-in-class efficiency, to the market.”