R150 million investment for fruit sector growth

Mpact recently announced the official opening of its new corrugated factory in Port Elizabeth. The company held an on-site ribbon-cutting ceremony with customers, Mpact directors and employees in attendance.

Mpact opens up a new facility in the Eastern Cape

‘The expansion extends Mpact Corrugated’s national manufacturing footprint which enables us to consistently offer the highest levels of quality and service to our customers, many of whom are here to celebrate this milestone with us,’ says Johan Stumpf, Mpact Corrugated MD.

A long standing dairy customer of the company, Victor Korsten, CEO of Coega Dairysays: ‘Coega Dairy has been associated with Mpact in Port Elizabeth since its inception. Over the years Mpact has supported us with product development, innovation and supply chain management.

Mpact’s R150 million investment in Port Elizabeth is centered on a new state-of-the-art corrugator supplied by industry leading German machine supplier, BHS. The new machine more than doubles the factory’s capacity while also improving quality, production efficiencies and key sustainability metrics such as energy usage. This is geared towards growth in demand for citrus packaging in the Eastern Cape on the back of substantial investments by Mpact’s customers in the sector.

In the final phase of the project, Mpact will install a fully-integrated printing and converting machine as well as a flat-bed die-cutter. ”This work is progressing well and is on schedule for completion during the second half of 2018” adds Stumpf.

Mpact has previously invested extensively in customer aligned strategic projects that position the Group well for growth. ‘Our capital investments across the Group such as the one here in Port Elizabeth, the recently commissioned R765 million Felixon paper mill project and the new R100 million jumbo bin injection-moulding machine are all geared towards ensuring our customers get the best quality products that are worth their price.’ says Bruce Strong, Mpact Group CEO.

The expansion of the Port Elizabeth plant is part of Mpact Corrugated’s extensive modernisation programme which has included investments of more than R800 million over the past six years.

‘As a true measure of sustainability it is worth noting that Mpact’s Port Elizabeth factory has been in business for nearly 100 years. This investment demonstrates that we remain deeply committed to serving our customers in the Eastern Cape for many years to come,’ Strong concludes.