SPAIN (From news reports) -- Smurfit Kappa's Bag-in-Box division has announced the completion of a €12 million investment in a new flexible material production facility at its plant in Ibi, Spain.

The new production facility commenced operations, on a phased basis, earlier this year and will be one of the most advanced Bag-in-Box manufacturing plants in Europe, the packaging firm said.

The investment has resulted in the addition of an extra 4,300 m2 production area which will be equipped with high-tech and advanced machinery which allows for more specialization in the manufacture of film.

The new machinery will allow the plant to complete the full production cycle of Bag-in-Box packaging solutions, from start to finish.

Commenting on the investment, Thierry Minaud, CEO of Smurfit Kappa Bag-in-Box, said, "This strategic investment represents an important step for Smurfit Kappa Bag-in-Box Spain.

"In addition to introducing innovative technology to create a fully integrated plant for Bag-in-Box production, it will allow us to increase our production capacity to better respond to market demands," he said.

Environmental Impact

This integrated production model means not only quicker and more efficient service to customers, but also a considerable reduction of the environmental impact - up to 21% less estimated CO2 emissions for the current flexible materials portfolio.

Victor Juan, Film Manager at Smurfit Kappa Ibi added, "These new facilities will accelerate the development of new, more sustainable films with the highest performance to meet the needs of our customers for high quality Bag-in-Box packaging solutions, and further strengthen our commitment to the environment."

The Ibi manufacturing plant in Spain has been in operation for 45 years.

The number of employees at the plant has more than doubled since it was acquired by Smurfit Kappa in 2007.