Europac has announced the construction of a new integrated corrugated packaging facility in Tangier Automotive City (TAC) in Morocco
The Spain-based packaging company said it has already acquired 30,000 sqm of land in TAC industrial zone where it will build the facility. It will install one corrugator and three converting lines for corrugated cartons at the mill.
According to Fernando Aranguren, director of Europac?s resources division, ?The commissioning of the packaging plant in Morocco, scheduled for Q3 of this year, will mark the successful completion of one of our current investment projects.?
Europac is investing about US$35mn in this expansion of its existing business in Morocco. The company had started operations in the country in June 2014 and has been producing heavy-duty boxes for the automotive industry on two converting lines. Both those lines and other activities of Europac will be moved to the new facility once it is ready.
This investment by the Europac Group is its largest outside the European Union (EU) and will result in the creation of 120 direct jobs locally. The project will form part of the value chains of the automotive sector and also the agricultural and agrifood sectors, and will benefit the Moroccan packaging market. The production unit will also benefit from Tangier?s new port and industrial zone facilities.
The European Investment Bank is lending about US$11.5mn for the project and the financing structure will be secured by Spain?s Bance de Sabadell.
