Media releases

Mpact investment in PE plant benefits local agriculture and industry

04 June 2014

Mpact's Port Elizabeth plant has benefited from considerable investment in new case-making equipment recently which will ensure that the company meets growing demand for corrugated packaging in the agricultural and industrial sectors.

Mpact's prime customers in the Eastern Cape are in the agriculture and manufacturing industry sectors. The JSE-listed paper and plastics packaging manufacture also has a corrugated packaging plant in East London.

The investment in the plant situated in PE's Deal Party Estate is part Mpact's group-wide investment programme in plant and equipment. We have developed our leading market position by focusing on investments in equipment and technology. This investment has to be a continuing initiative because new manufacturing technology helps improve the quality of packaging products, says Ralph von Veh, MD of Mpact's Corrugated division.

It remains important to Mpact to have a strong manufacturing presence in regions such as the Eastern Cape. Being close to our customers in this province is essential because we are better able to understand their needs and deliver on these, says von Veh.

In the Eastern and Western Cape, fruit farmers are major users of Mpact's products. South Africa's fruit exports, especially to Europe, have to meet strict criteria that include packaging standards.

Mpact's corrugated customers also include producers of fast moving consumer goods (FMCG) and other durable and non-durable goods. These businesses use packaging primarily for the protection of products in transit and for point-of-sale display.

The corrugated division manufactures and sells a comprehensive range of printed and unprinted converted corrugated products, including board, which is used to manufacture corrugated packaging, corrugated boxes, die-cut cases, folded glued cases, trays and point-of-sale displays.

In total the corrugated packaging division has 12 plants, nine of which are located in South Africa, two in Namibia and one in Mozambique. Most sites are fully equipped to produce corrugated packaging from regular slotted cartons to die-cut, self-locking trays for the local and export market.

One of these sites is Detpak South Africa, where Mpact recently acquired the new acquisition of a 51% interest in this niche manufacturer of paper and board packaging for the quick service restaurant sector.

Issued by FTI Consulting Strategic Communications

Kgomotso Moalusi +27 (0) 11 214 2413 / +27 (0)76 941 2902

Trevor Jones +27 (0) 11 214 2414 / +27 (0)83 326 7698

On behalf of Mpact Limited

Deborah Chapman Communications Manager, Mpact +27 (0) 11 994 5500 / +27 (0)76 650 4155

About Mpact

Mpact is a leading manufacturer of paper and plastics packaging in Southern Africa. The Paper business is integrated across the recycled paper-based corrugated packaging value chain and comprises three divisions being Recycling, Paper Manufacturing and Corrugated. The Plastics business manufactures rigid plastic packaging for the food, beverage, personal care, homecare, pharmaceutical, agricultural and retail markets. Products include PET preforms, bottles and jars; plastic jumbo bins, wheelie bins, and crates; plastic containers for the Fast Moving Consumer Goods (FMCG) market; styrene and PET trays, fast food containers and clear plastic films. The Group employs 3,998 people in 32 operations in South Africa, Namibia, Mozambique and Zimbabwe.


Source: MPACT