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Jabil Announces USD 25 Mn Investment in Paper Packaging Solutions

The new automation and machinery will increase packaging capacity for North American and European markets. This expansion of the JPS footprint is a continuation of the process begun in January 2021, when Jabil acquired Ecologic Brands.

March 17, 2021

Image: Jabil

Jabil Inc. has announced expansion plans for its newly acquired paper bottle technology with a USD 25 million investment in subsidiary Ecologic’s Manteca, California, and the build-out of a new paper bottle plant in its Sustainability Center of Excellence in Tortosa, Spain. This expansion will create the first paper-based scaled technology in the market, as Jabil delivers Ecologic’s innovative pulp molding capabilities to new geographies and enables the production of hundreds of millions of new paper packages.

Jabil is making this investment in response to significant consumer packaged goods (CPG) market demand. As per research by Euromonitor, consumers reported that they are three times more likely to prefer paper-based packaging over alternatives that leverage metal or plastic.

Jabil’s global investment includes a footprint expansion, as well as the delivery of new equipment and automation, unlocking the tremendous potential for CPG brands. This investment accelerates the maturation of paper packaging in commercial settings, from a niche application to a global brand scale.

Jason Paladino, senior vice president of Jabil and CEO of Jabil Packaging Solutions stated that “As consumers become more informed about the environmental impact of plastic waste, they are looking for new, sustainable packaging solutions such as paper. The challenge for packaging providers is the ability to scale production to meet this demand.”

The enhancement of the two facilities in the Jabil Packaging Solutions (JPS) division significantly enriches Jabil’s sustainable packaging platform and offerings for CPG customers. This expansion of the JPS footprint is a continuation of the process begun in January 2021, when Jabil acquired Ecologic Brands, a leading provider of sustainable packaging specializing in paper bottle and paper-based packaging solutions.

He further added that “the expansion of these two facilities will result in a significant increase in packaging capacity for the North American and European markets, helping CPG brands in pursuit of challenging sustainability goals.”