AMG Packaging & Paper Company is pressing ahead with its expansion plans, extending its engagement with Simple Advisory Limited as it moves into the next phase of a strategic initiative designed to increase production tenfold.

Central to the company’s growth ambitions is the consolidation of its warehousing into a single, purpose-built factory and the upgrade of its corrugator system, alongside additional investments to improve efficiency and output.

“What we are considering is the consolidation of our warehousing into one purpose-built factory, the upgrade of our main piece of equipment, which is our corrugator, and some other small pieces of equipment that would increase our productivity tenfold,” Chairman Metry Seaga told shareholders when questioned about the latest on its acquisitions plans during the company’s annual general meeting on Wednesday.

“It’s really a very specific process — looking for a space that could hold the corrugator and getting some other equipment. That is the main focus that we are looking at in 2025.”

AGM Packaging first enlisted Simple Advisory last year to develop a structured expansion plan, assessing financial feasibility and determining whether to build, rent, or acquire additional facilities. With that groundwork now complete, the company has moved into the execution phase, retaining the consultancy to guide the next steps in capital deployment and operational scaling.

“We have now engaged them for the second part of their proposal, and we expect that to start any day now,” Seaga confirmed.

As AMG deepens its expansion efforts, its latest financials reflect a strong asset base, reinforcing its capacity for long-term investment. Property, plant, and equipment stood at $999.7 million, signaling substantial capital already committed to physical infrastructure. Meanwhile, total assets of $1.76 billion provide room for further financing, particularly as the company evaluates the cost implications of its factory consolidation and equipment purchases.

Still, AMG is navigating a shifting operating environment. Its latest unaudited financial results for the first quarter ending November 30, 2024, showed revenues slipping 7.29 per cent to $252.64 million, with management attributing the dip to Tropical Cyclone Raphael, which temporarily disrupted operations. Net income before tax fell 30.99 per cent to $40.3 million, reflecting increased expenses and a decline in gross profit.

Despite this, AMG remains confident in its ability to strengthen its financial position through cost management and operational efficiencies. A major factor in its strategy has been the rollout of an enterprise resource planning (ERP) system, which Seaga credited for improving purchasing decisions and overall productivity.

“We see our sales dropped a little bit, but our income increased,” he noted at the AGM. “That’s because we have been using the new system, that’s because we have been buying better, that’s because paper prices have come down. And these are the things that we are using to make the company a stronger company.”

Another key area of focus is AMG’s market footprint, with shareholders questioning whether the company’s concentration in Kingston limits its growth potential. Seaga acknowledged the need to expand distribution beyond the capital, particularly in northern and western Jamaica, and confirmed that this will be addressed in upcoming board discussions.

“We have been very Kingston-centric, and one of the things that we’ll discuss at our next board meeting is how do we become more island-wide focused rather than just Kingston-centric,” he said. “We do have customers outside of Kingston, for sure, but the point is very valid, and we will take that into account.”

Beyond improving domestic reach, AMG is also evaluating its export potential, a goal that aligns with its planned investment in production capacity.