Grupo Gondi builds US$ 300 million containerboard mill in Nuevo Leon

13 October, 2017

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Grupo Gondi, a Mexican paper packaging manufacturer, announced plans to invest US$ 300 million a new containerboard mill facility in Guadalupe, Nuevo Leon, with capacity for 400,000 tons a year.

It will be built on a 2.5 million square-feet site in the Nexxus industrial park in the neighboring industrial suburb of Guadalupe, adjacent to the group's new 516,000 square feet corrugated and high graphics "hybrid" packaging plant.

The new mill will run the largest containerboard machine ever installed in Mexico,” said the company in a . It has also raised the capacity of the paper mill from the 350,000 tons per year originally announced.

The machine is to produce lightweight recycled linerboard and corrugating medium, and will boost Grupo Gondi's total capacity to 1.1 million tons a year of containerboard and boxboard on its seven paper machines.

Grupo Gondi CEO Eduardo Posada said the new paper mill will not only "guarantee supply" to its own converting plants, but will give the company the opportunity to offer products to local converters and for the export market.

"We will strengthen our packaging supply to the growing demand within the Mexican market, while assuring a complete and solid integration of our product lines to guarantee enough supply for our customers," Posada said.

He said the project will "consolidate an important packaging cluster" in northern Mexico, with good logistics to also serve the southern U.S. market. The company has been growing rapidly since entering into a joint venture with WestRock in early 2016.

WestRock, the second largest containerboard and box maker in North America, contributed three of its corrugated plants in Mexico plus US$ 170 million in cash and stock in exchange for a 25% equity interest in the combined company with Grupo Gondi.

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