MWV looks to Brazil for packaging advantage

By Andrew McDougall

- Last updated on GMT

MeadWestvaco (MWV) has announced it will make a significant investment to grow Rigesa, its corrugated packaging business in Brazil, to capitalize on the emergent market growth the country is showing.

Alison von Puschendorf, MWV's director of public relations, said that due to the company having operated in Brazil for over 60 years, MWV is confident the investment will be long-term and that it will hold a competitive advantage.

“We know the market and the consumer demands there very well. This is the right time to capitalize on this growing emerging market by delivering the right packaging solution made from the right material to serve the country’s specific demands,”​ she told CosmeticsDesign.com USA.

Largest MWV investment into Brazil

The growth markets for Rigesa, a wholly owned subsidiary of MWV, are in food, produce, personal care and household products, von Puschendorf said this expansion in capacity will give the company the opportunity to better serve those profitable markets

“Brazil is identified as the third largest beauty & personal care market in the world and is growing. By strengthening our Rigesa operations we will be well positioned to meet the growth needs,”​ she explained.

The company will invest approximately $480m to develop its existing facility and said the expansion will significantly strengthen MWV’s Rigesa operations as a fully integrated packaging solutions company.

This investment is the largest made by MWV in Brazil, and is currently one of the largest investments in the State of Santa Catarina.

“Rigesa will further leverage its sustainable forestry, mill and converting operations, as well as consumer insights, design and engineering, to produce specialized corrugated packaging solutions for high potential growth markets in South America,” ​said von Puschendorf.

Shareholder value

Chairman of MWV, John A. Luke Jr., believes the expansion will hold tremendous value for the company’s shareholders and echoes the view that this will be a long-term investment.

"Our experience, knowledge-base and existing infrastructure in Brazil - along with the country's emergence as an economic powerhouse - make further investment in our business there very logical and attractive,”​ he said.

He continued to explain that Latin America, especially Brazil, offers an excellent opportunity to more broadly support its global customer partnerships to drive growth in current areas of strength and those areas identified for growth.

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