JAMAICA Packaging Industries Limited (JPI) has completed a $2-billion investment in a new facility located on Spanish Road, St Andrew, which more than triples its production capacity. The expansion aims to position JPI as a reliable local supplier with the hope of reducing Jamaica’s dependence on imported packaging.

“That has been done and has been set up with a view to exporting and also substituting imports. We believe in excess of 60 per cent of corrugated boxes that are used in Jamaica are imported from elsewhere,” JPI Chairman Conrad George said after a recent tour of the facility.

Most of Jamaica’s cardboard boxes are imported from the Dominican Republic and Costa Rica. JPI is optimistic about the potential for import substitution, noting that the facility’s quality and reliability should allow it to compete effectively with international suppliers. According to George, JPI is determined to change the local landscape by offering dependable packaging products tailored to the Jamaican market while maintaining the highest standards of quality.

“From the point of view of our capacity, reliability, and the increase in quality, there is no reason why we cannot succeed in wiping out that import margin. So that is one of the first objectives of JPI,” he confidently stated.

While it’s focusing on import substitution, it has begun exporting with its first container of products leaving Jamaica for Trinidad on Friday. The company operates alongside Caribbean Packaging Industries (CPI) in Trinidad, both under Canadian Overseas Packaging Industries. Previously, JPI received shipments from Trinidad to supply the Jamaican market, but this shipment marks the first time JPI will send its products to Trinidad. When asked by the Jamaica Observer about regional expansion plans following its capacity increase, JPI indicated that other markets in the region could be next.

“Yes, I believe there are plans to export elsewhere, but as you see, it’s a comparatively new operation at this location, and so they’re just ramping up production. They’re still installing machines. But in due course, this facility seeks to capture the 60 per cent of packaging that’s currently imported into Jamaica and to support export growth,” George responded to the BusinessWeek.

In response to enquiries about potential regional expansion following the recent increase in production capacity, JPI indicated that it is eyeing additional markets in the Caribbean. The company is currently ramping up operations and installing new machinery, which will help capture the 60 per cent of packaging currently imported into Jamaica and support export growth. JPI’s strategy focuses on leveraging Trinidad’s proximity to key markets, allowing it to better serve those regions while providing support from Jamaica.

“In terms of further opportunities, we need to do more research, but Belize, for example, doesn’t have a corrugated plant, which presents a new market for us. Suriname also lacks a corrugated plant, although Guyana has one. These are regions where we haven’t traditionally expanded,” said Darren Leigh, regional manager.

The two-year development process has already resulted in a 250 per cent increase in production capacity, and JPI plans further expansion as additional equipment and machinery are added to the facility.