Sonoco invests in molding plant in Mexico to meet demand

By Michelle Yeomans

- Last updated on GMT

Sonoco invests in molding plant in Mexico to meet demand

Related tags Personal care industry Investment Sonoco

US packaging firm Sonoco is set to open a new manufacturing facility in Celaya, Guanajuato Mexico to meet growing demand in the personal care industry amongst others.

The company that reckons itself as North America's largest manufacturer of molded foam components and packaging solutions will invest up to $10.5 million in the new plant that will also create more than 200 new manufacturing jobs.

"Sonoco is experiencing strong demand for its products in the U.S. and Mexico and as a result, we need to increase our manufacturing capacity and flexibility​," says Vicki Arthur, vice president, Global Protective Solutions.

The packaging supplier believes this new state-of-the-art plant will allow the company to better serve customers in central Mexico and better position it to capitalize on the tremendous growth that is occurring in the region.

The investment is also said to then in return, continue to strengthen the economy in Guanajuato, to which mayor Arq. Ismael Perez Ordaz is pleased expressing his belief that the company has chosen well in deciding to locate its new plant in Celaya. 

"The area's highly trained workforce and strong business climate make it a prime location for these types of jobs​."

The facility is currently under construction with production scheduled to begin by late 2013.

Other developments to meet personal care industry demand

Back in 2011, the packaging firm announded it was focusing its efforts on expanding its blow-molding plastics business as part of its strategic and financial update.

Within Sonoco’s consumer goods packaging sector, this segment continues to drive sales of personal care products, for beauty and healthcare.

Then, Roger Schrum vice president of investor relations and corporate affairs at Sonoco explained to USA what the company's goals were for 2012.

“We will start-up a new 150,000 square foot plant in Columbus, Ohio, and will install several blow-molding and injection molding lines. These will produce packaging and components for personal care for Mast Global, the sourcing and logistics division of Limited Brands."

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