International Paper to Increase Investment in Morocco

Rabat – International Paper (IP), one of the world’s biggest producers of renewable fiber-based packaging, pulp and paper products, has announced a new 2020 investment program worth MAD 100 million (nearly $10 million) for its production facilities in Morocco. The aim of this program is to meet the increasing demand for sustainable corrugated packaging solutions.

The company recently celebrated achieving “a paper annual production volume of 55 MM sqm” at its Tangier box plant; a first since the facility acquisition in 2017.

As part of the newly announced investment program, MAD 65 million ($7 million) will be allocated to the purchase of new machinery intended to improve the plant’s production capacities. The objective is to consolidate “International Paper’s position in the fresh fruit & vegetable (F&V) and the automotive segments,” the company said in a statement.

This investment will also increase the production capacity of the factory’s first-class printed F&V trays by approximately 55 million units per year. The Tangier plant will also be able, in the future, to “manufacture large American boxes,” an essential product in the automotive sector.

“Our customers and end users want products that contribute to a more sustainable, low-carbon future,” noted Bertrand Laplaud, IP’s Regional General Manager for Morocco & West Africa, adding that corrugated packaging remains the most effective solution to respond to the current high customer demand.

IP’s investment will also make “more sustainably made packaging products that people depend on every day available in Morocco,” which will contribute positively to the country’s circular economy, according to the company’s statement.

The statement added that the measures IP has taken to minimize waste and maximize the recovery of materials will also cover product design and development as much as the supply of raw materials, circular manufacturing processes and collaboration with customers and suppliers.

For example, IP’s factory in Kenitra treats nearly 90,000 tonnes of locally sourced old corrugated containers (cardboard) annually to produce recycled containerboard.

To ensure the project’s continuity, IP will also dedicate MAD 35 million (nearly $4 million) to the installation of a new multi-fuel boiler, which will provide greater fuel mix diversity and improve energy efficiency at its factory in Kenitra.

In addition, the company will study the possibility of implementing other energy solutions, including solar energy, as Morocco investigates other fuel-related approaches.

“We’re excited about this significant investment program,” stated Bertrand Laplaud. “Delivering the products our customers want while leading the path in sustainability is at the core of our strategy. Morocco remains very attractive for us as its economy continues to grow at healthy rates, and we strive to build on our advantaged position and further grow our business.”

IP’s investment activity in Morocco dates back to 2005, when the company signed an agreement to acquire a 65% majority share of the Moroccan Company of Cartons and Papers (CMCP), which was specialized in corrugated packaging.