{"id":4802,"date":"2025-01-15T04:17:13","date_gmt":"2025-01-15T09:17:13","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=4802"},"modified":"2025-01-15T04:17:13","modified_gmt":"2025-01-15T09:17:13","slug":"pakka-to-set-up-compostable-packaging-facility-in-guatemala","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=4802","title":{"rendered":"Pakka to set up compostable packaging facility in Guatemala"},"content":{"rendered":"


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The new unit is designed to produce 400t of compostable packaging materials daily. Credit: Chay_Tee via Shutterstock.<\/figcaption><\/figure>\n<\/p><\/div>\n

Indian sustainable packaging materials producer Pakka has unveiled plans to establish a new compostable packaging facility in Guatemala, the Hindu Business Line<\/em><\/a> has reported.<\/p>\n

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The new unit is designed to produce 400 tonnes (t) of compostable packaging materials daily, targeting the North American market.<\/p>\n

This $340m project aims to become the world\u2019s largest compostable packaging facility, with operations commencing between late 2026 and early 2027.<\/p>\n

Pakka has already secured seed funding between $10m and $12m for land acquisition and intends to raise an additional $200m in debt and $130m in equity to finance the project, according to the news agency.<\/p>\n

Pakka Group CEO Ved Krishna expressed that there is significant interest from sugar companies, strategic partners, and customers in investing in the Guatemalan facility.<\/p>\n

In a strategic move to bolster its innovation capabilities, Pakka is also relocating its research and development centre from Bengaluru, India, to Portland in the US.<\/p>\n

The company is committing $5m this year to advancing sustainable materials research, focusing on bagasse and nanocellulose.<\/p>\n

Serving global clients such as McDonald\u2019s, Domino\u2019s, and Mars, Pakka says it is dedicated to replacing non-biodegradable packaging with regenerative solutions.<\/p>\n

Pakka aims for a 20-fold growth by 2030, driven by new products that will enhance revenue from its Ayodhya, India, plant and global operations.<\/p>\n

Last August, the company secured Rs2.44bn ($29.06m) in investment to scale up<\/a> its production capabilities.<\/p>\n

The company noted that this funding will be used to develop a compostable flexible packaging facility in Ayodhya, located in the state of Uttar Pradesh.<\/p>\n

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