CIWMB Awards Packaging Company $2 Million Loan

The California Integrated Waste Management Board announced that it issued a loan for $2 million to Sierra Pacific Packaging Inc. The money will be used to purchase and install new equipment. The company is expected to divert an additional 3,750 tons of recovered fiber a year.

The company is located in one of California’s recycling market development zones.

In deciding to award the company the loan, the RMDZ noted that the company’s current facility is operating at near capacity and because of the increasing market share in the industry SPPI is faced with a need to expand its operations. Immediate plans are to add 70,000 square feet to the existing building, which will allow SPPI to take paper feedstock shipments directly to the plant from the suppliers. 

This will reduce the cost of goods and allow SPPI to be even more competitive in price and execute its growth strategy.  The additional space will also eliminate the need for offsite warehousing for the finished products allowing SPPI to focus on production rather than storage limitations. 

SPPI will add a larger format 56-inch press production line to supplement its existing 40-inch press production line. This will provide adequate capacity and allow SPPI to compete, not just with existing competitors, but also with larger folding carton companies.  The existing 40-inch press does not have the state of the art improvements that will be available in the new 56-inch model.