Elopak announced plans to build its first U.S. production plant that will produce Pure-Pak cartons for liquid dairy, juices, plant-based products and liquid eggs. The new production facility will be located in Little Rock, Ark., and is expected to start production in H1, 2025.
It represents an investment for the region of around $70 million including the land, building and equipment.
Following the investment announcement in June 2023, the company has evaluated different financing opportunities and concluded to own and 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 $15 million. This is economically more profitable for Elopak compared to partly leasing, which was assumed in June, the company says. Further, around $5 million is added to the investment to optimize the scope of the project and support long term growth.
The new plant is expected to 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. 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” says Thomas Körmendi, CEO of Elopak.