New R150m PE facility for Mpact

State-of-the-art machine more than doubles capacity of packaging plant

Mpact Group chief executive Bruce Strong
Mpact Group chief executive Bruce Strong
Image: Supplied

One of the largest paper and plastic packaging manufacturers in South Africa officially opened its R150-million corrugated factory in Port Elizabeth yesterday.

Mpact’s investment in the city is centered on a 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.

Mpact Corrugated managing director Johan Stumpf said the expansion extended Mpact Corrugated’s national manufacturing footprint.

“This 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,” he said at the launch.

“I am pleased we were able to deliver a complex project of this nature on time and within budget. The Mpact employees and our partners on the project worked hard to ensure this achievement.”

Victor Korsten, chief executive of Coega Dairy, which is a longstanding customer, said: “Over the years Mpact has supported us with product development, innovation and supply chain management.

“So it’s a great pleasure to congratulate Mpact [on] its new facility and we look forward to a long relationship with the firm.”

Gustav Bell, packhouse operations manager of Endulini Fruit, one of Mpact’s largest citrus customers, said: “On behalf of the Endulini group of companies we want to congratulate you with the opening of your new upgraded state-of-the-art carton manufacturing facility.”

In the final phase of the project, Mpact will instal 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,” Stumpf said.

Recently, Mpact has invested extensively in customer-aligned strategic projects that position the group for growth.

Mpact Group chief executive Bruce Strong said: “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.”

As the largest recycler in South Africa, Mpact also epitomises the circular economy, substantially reducing the amount of waste going to landfill each year.

“Besides these projects, we opened a new facility last year for recycling paperboard-based milk and juice cartons, an investment of R50 million,” Strong said.

“This goes hand-in-hand with our extensive paper recycling business and our PET bottle recycling plant

“It was commissioned in 2015 – and today supplies recycled PET for the use in new bottles of beverages.”

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,” Strong said.

“This investment demonstrates that we remain deeply committed to serving our customers in the Eastern Cape for many years.”

Mpact is one of the largest paper and plastics packaging businesses in southern Africa, with leading market positions in recovered paper collection, corrugated packaging, recycled-based cartonboard and containerboard, polyethylene-terephthalate preforms and trays, recycled PET and plastic jumbo bins.

These market positions allow the compnay to meet the increasing requirements of its customers and achieve economies of scale and cost effectiveness at the various operations.