The new production facility will be located in Little Rock, Arkansas and is expected to start production in the first half of 2025. It represents a significant investment for the region of around USD 70 million including the land, the building and the equipment.
In a statement, Elopak said, “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,” the company said.
“Since the announcement in June, we have signed contracts with some of our existing customers in the region, further strengthening the investment case,” Elopak added.
According to Elopak, 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,” said Thomas Körmendi, CEO of Elopak. “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”
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 leading global supplier of carton packaging and filling equipment. The company’s 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.
SOURCE: Elopak