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AMG Packaging expands into consumer paper market

Published:Thursday | July 30, 2015 | 1:13 PMTameka Gordon
General manager of AMG Packaging & Paper Company, Michael Chin.
A section of the AMG complex under development.

AMG Packaging and Paper Company is to expand its slate of products to toilet paper and paper towels under a $150-million investment that marks its entry in the consumer market.

The company has leased a 15,000-square-foot site at Orange Street, Kingston, where the new products will be made, General Manager Michael Chin told the Financial Gleaner.

"During our 10-year operation, AMG Packaging and Paper Company has focused on the packaging aspect of our business and we now feel it is the right time to start producing other paper products and diversify our product line," Chin said via email.

The company will spend some US$450,000 ($52.7 million) on upgrades to the facility, Chin said, including new equipment and fixtures. AMG is also building a ramp outside for containers to offload supplies and adding storage space.

"It doesn't include raw material," he said. "That is just for the equipment and the factory itself because there was a little wear and tear that needed to be adjusted there."

Overall, AMG Packaging is spending some $150 million to expand its product line and prepare the new plant, Chin said.

The Orange Street facility sits close to AMG's main complex and is large enough to facilitate future expansion, he said.

Jamaica's toilet paper market is largely served by imports, a market Chin estimates at US$31 million.

"We will offer regular and ultra-toilet paper packaged in single or multiple rolls," he said, depending on market need. There are no immediate plans to tap the export market.

AMG will employ 20 workers at the new plant.

The packaging company started in 2005 with 12 employees and now employs over 100, he said.

AMG's last big investment was the addition in 2013 of 10,000 square feet of warehouse space at its Retirement Crescent, Kingston complex, which increased the plant to 30,000 square feet. That warehouse expansion added $63 million of value to its fixed assets.