DUBLIN (From news reports) -- Smurfit Kappa is set to invest €54m to double the capacity of its bag-in-box plant in Alicante, Spain.

The site focuses on a range of packaging for wine, dairy products, liquid eggs, cooking oils and water.

The new investment will add enhanced waste management systems to the plant, while the packaging giant also aims to reduce energy consumption at the factory.

The plant has already introduced a number of recycling systems to identify and separate by-products.

The Irish group said today the investment will add 200 jobs at the plant.

"Today's announcement demonstrates our commitment to the bag-in-box division and forms part of our multi-country expansion plan," Smurfit Kappa Europe chief executive Saverio Mayer said.

"We have invested €90m in the plant throughout the last decade which has significantly enhanced our offering," he added.

In 2022, Smurfit Kappa invested €22m in upgrades to a sheet plant in Mexico and also announced plans for the construction of a new plant in Morocco.

Smurfit Kappa employs more than 47,000 people across 36 countries.

In November, the group reported earnings before interest, taxation, depreciation and amortisation (Ebitda) of €1.6bn in the nine months to September 30, down 12pc from the corresponding period in 2022.

The group also generated revenues of €8.5bn for the first nine months of the year.

It also reported improved margins of 19pc, up from 18.2pc from the same period last year.

In September, Smurfit Kappa and US firm WestRock announced plans to merge. The transaction is expected to close in the second quarter of 2024 subject to shareholder and regulatory approvals.