UFlex sets up first overseas WPP bags plant in Mexico with $52 mn investment; share jumps 4%

Packaging solutions company UFlex on Monday announced the commissioning of its first overseas woven polypropylene (WPP) bags manufacturing plant in Mexico with an investment of around $52 million. The facility marks a key milestone in the company's global expansion strategy and is expected to strengthen its presence across the Americas.

Located in Altamira, Mexico, the 10-acre facility has an annual production capacity of 80 million woven polypropylene bags and has been built to cater to the growing demand for high-performance packaging solutions across North and South America, particularly for the fast-growing pet food industry. WPP bags are commonly used in agriculture for packaging essential products like grains, seeds, fertilizers, and animal feed.

"With an annual production capacity of 80 million WPP bags, the facility is well positioned to serve the growing demand for high-performance packaging solutions across the Americas," the Noida-based company said in a release.

Shares gain up to 4%

Shares of UFlex reacted positively to the announcement, rising as much as 3.96% to an intraday high of ₹490.20 on the BSE. At the time of writing, the small-cap stock was trading 2.1% higher at ₹481.40, taking the company's market capitalisation to around ₹3,476 crore.

Jeevaraj Gopal Pillai, President – Flexible Packaging and New Product Development at UFlex, said the commissioning of the Mexico facility is a strategic step towards expanding the company's global manufacturing network and strengthening its footprint in the Americas.

He said rising pet ownership across North and South America is driving demand for premium pet food and high-performance packaging solutions. The North American pet food packaging market, valued at more than $12 billion in 2026, is expected to witness sustained growth, while Latin America continues to emerge as a high-potential market, supported by urbanisation, rising disposable incomes and increasing awareness of pet nutrition.

"The new facility will enable us to deliver innovative, high-quality packaging solutions closer to our customers, ensure shorter turnaround times, and support the evolving sustainability and performance needs of the region's fast-growing pet food industry," Pillai said.

The company said the new plant is equipped with advanced European machinery and operates through clean, low-noise and emission-free processes in line with its environmental, social and governance (ESG) commitments. It also houses an in-house recycling unit and a zero solid waste discharge facility designed to maximise material recovery, minimise waste generation and promote responsible waste disposal.

The WPP bags manufactured at the facility are engineered for enhanced strength and durability. They feature laser venting technology that allows air to escape while preventing mite ingress, along with precision hot-air sealing technology that can be adapted to different bag sizes and specifications, improving both product safety and shelf life.

The plant also houses an integrated converting facility that uses sustainable water-based inks and operates at speeds of up to 300 metres per minute. Additionally, it includes a quality and environmental control laboratory to ensure consistent product quality and regulatory compliance, besides producing high-quality woven polypropylene fabric used in the manufacture of WPP bags.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)