By Larry Claasen
MPACT Plastic Containers is investing a substantial R354-million to expand its capabilities with a new injection moulding factory in Castleview.
This investment will enhance the company’s ability to meet increasing customer demands and broaden its innovative product offerings, including a cutting-edge food-grade production facility and an automated warehouse.
The project is being rolled out in several phases, starting with the acquisition of property and the establishment of the manufacturing facility and warehouse.
An initial R178-million was allocated to phases 1 and 2, which include the setup of the factory and the installation of nine machines.
An additional R96-million has been committed to phase 2A, which involves constructing a 10 800-pallet automated warehouse.
Phase 3 of the project, which focuses on acquiring, refurbishing, and installing second-hand machines and equipment, saw an additional R80-million invested.
As of June 2024, Mpact said it had made significant progress. All 14 machines planned for phases 1, 2, and 3 are now operational, surpassing the original plan for nine machines.
The site has reached its full installed machine capacity ahead of the initial 2027 target, though it is not yet fully utilised.
The capacity for the automated warehouse in phase 2A has been revised to 9 600 pallets, with completion now expected by the end of December 2024.
The project’s scope has also been expanded to include a toolroom, two new beverage crate printing lines, a 1,1 MWp solar power installation, and standby generators, further boosting the facility’s capabilities and sustainability.
Following a strategic review in 2021, Mpact’s board decided to sell its Plastic Trays & Films business, Versapak, as a going concern. Versapak currently forms part of the Plastics Division of Mpact Operations.
On 31 July 2024, Mpact entered into a sale of business agreement with Greenpath Recycling (Pty) Ltd – a wholly owned subsidiary of Sinica Manufacturing – whereby Mpact will dispose of Versapak as a going concern for a purchase price of R268-million.
The purchase price will be adjusted based on the actual amount of stock on hand and the value of certain employee liabilities as at the effective date of the disposal.
Mpact is the largest paper and plastics packaging and recycling business in southern Africa, employing 5 095 people, and generating revenue of R14-billion from total operations in the 2023 financial year.
