US-based MeadWestvaco Corporation (MWV) said today that it has inked an MoU with the Gujarat government to invest Rs 1,000 crore ($184 million) over the next five years, including acquisition and expansion of the Vapi-based Ruby Macons Ltd.
The Memorandum of Understanding (MoU) was signed during the recently concluded Vibrant Gujarat Summit-2013 between MWV Senior Vice President Peter C Durette and the Gujarat government. The investment is expected to create 800 jobs over the next five years, a company spokesperson said.
The investment includes purchase of the Vapi-based Ruby Macons Ltd, as well as plans to expand current production at the facility, a company statement said.
When it acquired Ruby Macons in November 2012, MWV said that it shall be doubling its capacity at the newly acquired facility over the next five-year period.
“India is a very important market for MWV, and we are pleased to grow our presence with our acquisition and expansion in Gujarat,” MWV Junior Chairman and CEO John Luke said.
“We see significant opportunities for higher quality and more innovative packaging solutions in corrugated or industrial markets, largely due to the emergence of modern retail,” Luke said.
Macons, currently has production capacity of 1.50 lakh tonnes of container boards annually at its two mills having three paper machines in and around Vapi, Gujarat, besides another facility in Pune making rigid, humidity resistant corrugated packaging for fresh fruits and vegetables, consumer goods, household appliances and pharmaceuticals.
MWV has network of around 125 facilities and 16,000 employees across North America, South America, Europe and Asia.