Bio Pappel, the company that owns the Scribe brand, reported that its subsidiary McKinley acquired the paper and cardboard producer Midwest Papper Group, a company that has a value of 4,200 million pesos. With this movement, the Mexican company will reach combined annual revenues of three billion dollars, the company reported.
Midwest Paper Group is a large-scale independent producer of packaging paper and board, located in Wisconsin, with operations in addition to those in New Mexico and Washington. With this, the company is committed to reducing the dependence on the supply chains that it currently has with the Asian continent.
“The acquisition of Midwest Paper Group is consistent with our business strategy to continue building a solid and integrated TMEC paper and packaging company, as we are convinced that North America is the best region to invest and create long-term shared value,” he said. Miguel Rincón, president of the Council of Bio Pappel, quoted in a statement.
With the acquisition of Midwest, Bio Pappel projects that in the medium term half of the company’s revenues will come from Mexico and the rest from Canada and the United States.
It will also increase its production in the United States by 75%, which will allow it to have national coverage to support the growth plans of McKinley and its packaging supply systems throughout the United States.
This includes paper supplies from the Wisconsin plant, which has an annual production capacity of 500,000 tons, to the Midwestern United States, corrugated cardboard plants in Indiana and Georgia, as well as the recently announced plant in Dallas and other located in northern Mexico, a region with a high demand for sustainable cardboard packaging.
The company, which had a boost from the pandemic due to the growth of e-commerce, has been adjusting its strategy since last year to respond to the growing demand for paper and cardboard for packaging.