AMG Packaging and Paper Company has enlisted the services of Simple Advisory Limited as it moves forward with its expansion plans. The box manufacturer, which recently revealed its intention to acquire a third property to consolidate its operations, is working closely with the advisory firm to ensure strategic growth and operational efficiency.

The decision to onboard Simple Advisory highlights the seriousness of AMG’s commitment to scaling its business and maximising production capacity.

“We are looking at the possibility of expanding our production and creating more efficiency to ensure we can increase productivity, lower prices, and tap into the imported market,” AMG Packaging Chairman Metry Seaga told the Jamaica Observer.

While the acquisition of a third property remains in the early stages, AMG’s focus is on improving operations through consolidation and expansion. Seaga noted that the next three to six months will involve financial evaluations and recommendations from consultants, including Simple Advisory.

Simple Advisory Limited, a rising financial advisory firm, has been tasked with evaluating AMG’s expansion plans to ensure the company’s financial stability during this period of growth.

“Our role is to ensure that AMG’s expansion is financially sound and optimised for growth. We will help them navigate the complexities of scaling up their operations while maintaining profitability,” said Nicholas Dawson, managing partner at Simple Advisory.

This partnership comes as AMG continues to improve operational efficiencies, driven by recent upgrades to its facilities. The installation of new machinery at its second plant on Retirement Crescent has contributed to a 25 per cent reduction in manufacturing costs for the third quarter of 2024. Despite flat sales in the box manufacturing sector, AMG’s profits have risen, demonstrating the effectiveness of its cost-cutting measures.

AMG’s long-discussed expansion plans are gaining traction, with the company positioning itself for future growth after reporting $1 billion in revenue for the fiscal year ending August 2023. In the first quarter of 2024, revenues grew by seven per cent to $272.4 million, reinforcing the company’s strong market position despite economic challenges.

The acquisition of a third property will be a critical milestone in AMG’s growth strategy. The new site is expected to provide much-needed space for increased production and operational consolidation, helping the company reduce costs further and increase output.

While the location for the new property has not yet been determined, Seaga confirmed that the board is actively exploring options.

“We are fully committed to identifying a site that will allow us to consolidate and expand our operations,” he said.