Recycled paper manufacturing company Saica Group has announced the commencement of construction on its new corrugated board facility in Barcelona, Spain.

Situated in the municipality of Sant Esteve Sesrovires, the facility will consolidate operations currently conducted at Saica Pack El Prat and Saica Pack Barcelona.

The new project is being developed with an investment of more than €100m ($109.69m) to boost the combined production of the two factories by up to 45%.

Expected to begin operations in early 2025, the facility is set to meet the changing market needs and spatial constraints of the company's current plants while also creating sustainable packaging solutions.

Furthermore, this investment aligns with the company’s commitment to the Southern European packaging market, ensuring its capability to support customers' long-term growth plans.

The new factory will feature advanced technology, integrating flexography and offset processes. It will bring significant improvements by digitising customer services.

Saica chair Ramón Alejandro said: “This investment will allow us to have the latest digital technology.

“We will be able to increase our production capacity and also improve the service we provide to our customers.”

The existing factories in Barcelona and El Prat will remain operational until the new factory is ready.

Employees from both plants, with 194 and 100 workers respectively, and their representatives, are part of this transition, with each having the chance to transfer.

Saica received the land in 2010 and played a key role in developing the industrial estate, now home to several major companies.

In 2018, it constructed and opened a finished product warehouse on the estate.

This month, Saica signed an agreement to acquire a 100% stake in Ecovidal-Miguel Vidal e Hijos for an undisclosed sum.

Located in Madrid’s Torrejón de Ardoz municipality, Ecovidal is a waste management and collection company, which was established in 1953.