International Paper is announcing another investment program worth 100 million MAD (10 million EUR) at its production facilities in Morocco for 2022. The investment comes in response to the continued increase in demand for corrugated packaging solutions.
Most recently, the company celebrated the milestone of surpassing an annual production volume of 50 MM sqm at its Tangier box plant for the first time since acquiring the facility in 2017. Building on this success, approx. 65 million MAD will be dedicated to new equipment enhancing the Tangier site’s box making capacity and capabilities in order to further strengthening International Paper’s position in the fresh fruit & vegetable (F&V) and the automotive segments.
More specifically, the investment will increase production capacity for high-quality printed F&V trays at the facility by an estimated 55 million units annually. As a result, F&V customers across Morocco will benefit from greater box availability and choice and further enhanced service. Going forward the Tangier site will also have the capability to manufacture large American boxes, essential for customers in the automotive sector.
“Our customers and end users want products that contribute to a more sustainable, low-carbon future,” explains Bertrand Laplaud, Regional General Manager for Morocco & West Africa at International Paper. “Corrugated packaging is best suited to respond to this demand and our investments will make more sustainably made packaging products that people depend on every day available in Morocco, contributing to the circular economy.”
Looking to promote circularity in all areas of the value chain, IP’s efforts to minimize waste and maximize material recovery spans product design and development, raw material sourcing, and circular manufacturing processes as well as collaborating with customers and suppliers. For instance, International Paper’s Moroccan Kenitra mill uses approx. 90,000 tonnes of locally sourced OCC (old corrugated containers) each year to make recycled containerboard. This product is then converted at the company’s plants in Agadir, Casablanca and Tangier into corrugated trays and boxes to transport customers’ valuable goods to the end user.
In order to further advance energy efficiency at IP’s Kenitra recycled containerboard mill, approx. 35 million MAD will be dedicated to the installation of a new multi-fuel boiler which will enable greater fuel mix diversity. IP will also investigate the feasibility of implementing other alternative energy options at the mill, such as solar energy, as Morocco continues to explore different fuel strategies.
“We’re excited about this significant investment program”, said Bertrand Laplaud. “Delivering the products our customers want while leading the path in sustainability is at the core of our strategy. Morocco remains very attractive for us as its economy continues to grow at healthy rates, and we strive to build on our advantaged position and further grow our business.”
This significant investment is another sign of International Paper’s continued commitment to the Europe, Middle East & Africa region and sustainably growing its corrugated packaging business there.