OSLO, Norway — 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 of 2025.
It represents a significant investment for the region of around $70 million, including the land, the building and the equipment.
Following the investment announcement in June 2023, the company 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 $15 million. This is economically more profitable for Elopak compared to partly leasing, which was assumed in June. Further, around $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," said Elopak CEO Thomas Körmendi. "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."