Smurfit Westrock expands in Latin America

This week, Smurfit Westrock finalized an asset purchase agreement of Cartomanabi, a corrugated packaging company in Ecuador, further expanding its presence in Latin America in a move the company says will allow it to capitalize on corrugated packaging growth opportunities in the region.

The transaction is Smurfit Westrock’s first in Ecuador. Financial terms of the agreement were not disclosed.

“It is an important milestone for us in Latin America, where we are the only pan-regional supplier with a fully integrated supply chain and the broadest range of sustainable and innovative paper-based solutions,” Smurfit Westrock Latin America President and CEO Alvaro Henao says.

“We look forward to working together with customers in this country and sharing all our knowledge, expertise and value-driven innovation.”

Cartomanabi was founded in 2020 and produces corrugated packaging primarily for the agriculture, protein and fast-moving consumer goods sectors. It has an annual production capacity of approximately 50,000 tons, and though the company does not specifically mention using recovered fiber in its products, its website highlights sustainability as a benefit of its packaging.

According to a medium-term investor update released Feb. 11, Smurfit Westrock’s Latin American operations make up 7 percent of its geographic mix, with Europe, Middle East and Africa and Asia-Pacific making up 35 percent and North America comprising the remaining 58 percent.

Last year, Smurfit Westrock’s net sales in Latin America were about $2 billion across 10 countries.

The company also has integrated about 100,000 tons from its North American network into Central America and the Caribbean and, according to its investor update, sees further expansion opportunities in the corrugated business, particularly in Brazil thanks to its market size and agribusiness growth, both organically and through acquisitions.

“With this transaction, Smurfit Westrock further strengthens its ability to support customers’ growth in Ecuador and across the region,” the Dublin-based company says in a news release announcing the Cartomanabi purchase.