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India's Largest Packaging Company Expands into Mexico

Packaging Market Insights 2025-03-20 09:28:10

Recently, UFlex Ltd, India's largest integrated flexible packaging and solutions provider, announced that it will invest in setting up a factory in Mexico dedicated to producing polypropylene woven bags (WPP) for pet food. The total investment in this factory is expected to reach 50 million US dollars, making it the first WPP packaging plant in Mexico focused on pet food packaging.

UFlex Group Chairman and Managing Director Ashok Chaturvedi said: "We are pleased to announce this significant investment. The pet food market in North and South America has broad prospects, and we hope to further strengthen UFlex's competitiveness in the American market through this plant establishment."

Chaturvedi also specifically pointed out that the current pet food market size in North and South America is expected to reach about 90 billion US dollars by 2025, and is projected to grow to about 135 billion US dollars by 2030. UFlex's establishment of a factory in Mexico is precisely targeting this rapidly growing market.

It is reported that the new factory located in Mexico is expected to reach an annual production capacity of 80 million packaging bags by 2025-2026, and will mainly serve pet food companies in North and South America in the future. This move not only demonstrates UFlex's strategic layout in the international market, but also strengthens the company's leading position in the field of packaging solutions.

It is worth noting that this is not UFlex's first foray into Mexico. Earlier this year, UFlex announced the establishment of a new cast polypropylene (CPP) production line and related coating lines in Mexico, which are expected to commence operations in the fourth quarter of the 2025 fiscal year. The annual production capacity of this project will reach 18,000 tons, with a total investment estimated at 33 million US dollars. Currently, the capital investment in the project has reached 32 million US dollars.

Industry insiders pointed out that UFlex's continued expansion of investment in Mexico reflects the company's emphasis on the geographical and supply chain advantages of the Mexican market. Mexico, being close to the United States, has low logistics costs and favorable trade policies, which are conducive to UFlex serving the North American market quickly and efficiently. In addition, with the continuous growth of global pet market demand, especially the rapid development of the pet food packaging industry, UFlex's investment this time is also expected to yield substantial returns.

UFlex's significant investment this time may further promote the development of the local packaging industry in Mexico, provide more job opportunities for the region, and further consolidate the company's leading position in the global packaging industry.

Chinese enterprises should pay attention to the insights brought by UFlex's investment. Mexico's advantageous geographical location, free trade agreements, and industrial foundation provide ideal opportunities for international layout. As the trend of supply chain diversification continues to strengthen, Chinese companies can learn from UFlex's successful experience, actively explore setting up factories in Mexico, to better expand into the North American and Latin American markets, and achieve their global strategic goals.

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India's Largest Packaging Company Expands into Mexico

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