With plans to construct its inaugural U.S. production facility, Elopak is poised to integrate the latest state-of-the-art technology for enhanced and more efficient production. The new plant, set to be located in Little Rock, Arkansas, will produce Pure-Pak® cartons for liquid dairy, juices, plant-based products, and liquid eggs. Anticipated to commence operations in the first half of 2025, this strategic undertaking symbolizes a significant investment totaling roughly USD 70 million, encompassing the land, building, and equipment.
Following the investment announcement in June 2023, Elopak has meticulously evaluated various financing opportunities and ultimately opted to own and fully finance the plant on the balance sheet. As a result, the nominal cost of the investment will be duly recognized in the balance sheet as opposed to the discounted value of the lease payments, thereby bolstering the reported investment by approximately USD 15 million. This approach is economically more beneficial for Elopak compared to partial leasing, as initially assumed. Moreover, an additional USD 5 million has been allocated to further optimize the project’s scope and bolster long-term growth.
Additionally, since the initial announcement in June, Elopak has solidified contracts with several existing customers in the region, further fortifying the investment case.
Furthermore, the new plant is projected to generate over 100 permanent positions in the region for engineers, printers, operators, logistics specialists, and other essential support groups.
Thomas Körmendi, CEO of Elopak, shared, “This marks our inaugural converting plant in the U.S. and represents a significant investment for our company. North America serves as a pivotal cornerstone for our future expansion, and we are extremely enthusiastic about broadening our footprint in the region. I extend my gratitude to all involved parties for facilitating the next phase of our growth journey in North America.”
