Elopak has announced plans to build its first U.S. production plant with the
latest state-of-the-art technology for better and more efficient production. The
plant will produce Pure-Pak® cartons for liquid dairy, juices, plant-based
products and liquid eggs. The new production facility will be located in Little
Rock, Arkansas and is expected to start production in the first half 2025.
It represents a significant investment for the region of around USD 70 million
including the land, the building and the equipment.
Following the investment announcement in June 2023, the company has evaluated
different financing opportunities and concluded to own and fully finance the
plant on the balance sheet. Hence, the nominal cost of the investment will be
recognized in the balance sheet instead of the discounted value of the lease
payments, increasing the reported investment by around USD 15 million. This is
economically more profitable for Elopak compared to partly leasing, which was
assumed in June. Further, around USD 5 million is added to the investment to
further optimize the scope of the project and support further long-term growth.
Since the announcement in June, we have signed contracts with some of our
existing customers in the region, further strengthening the investment case.
The new plant will create more than 100 permanent jobs in the region for
engineers, printers, operators, logistics specialists and other support groups.
"This is our first converting plant in the U.S. and a landmark investment for
our company. North America is a key building block for our future growth and we
are very excited to expand our presence in the region. I would like to thank all
parties involved for enabling the next step in our North American growth
journey" says Thomas Körmendi, CEO of Elopak.
For further information, please contact:
Mirza Koristovic, Head of IR
E-mail: investors@elopak.com
Tel: +47 93 87 05 25
About Elopak
Elopak is a leading global supplier of carton packaging and filling equipment.
The company's iconic Pure-Pak® cartons are made using renewable, recyclable and
sustainably sourced materials, providing a natural and convenient alternative to
plastic bottles that fits within a low carbon circular economy.
Founded in Norway in 1957, Elopak was listed on the Oslo Stock Exchange in 2021.
Today it employs 2,600 people and sells in excess of 14 billion cartons annually
across more than 70 countries.
Elopak is a UN Global Compact participant member. We have set Science Based
Targets to reduce emissions in line with the 1.5 degree trajectory, and aim to
be Net-Zero by 2050. In 2023, we achieved a gold rating by EcoVadis and were
rated top 2% sustainable companies in the world.
For more information, go to www.elopak.com or follow us @Elopak on LinkedIn.