MEXICO (From news reports) -- Smurfit Kappa Group has agreed a deal to buy Cartonbox, a folding carton company located in Monterrey in the north-east of Mexico.

Smurfit Kappa said the deal represents an important milestone for the company as it strengthens its participation in the paper packaging solutions business in Mexico, while it also sees the company expand its presence to four folding carton locations in the country.

Cartonbox has a workforce of 240 people and supplies packaging to the fast moving goods sector (FMCG).

Juan G Castaneda, Smurfit Kappa Americas chief executive, said the company's top priority is to generate value for its stakeholders, and Mexico has shown to be a key country for it to invest in.

"Not only does this increase our footprint in the country, but it also allows us to answer our customers' needs and expectations. I am certain this will help us move a step forward in becoming the leading paper-based packaging company in Mexico," he added.

Jorge Alberto Angel, Smurfit Kappa Mexico chief executive said today's deal gives the company the opportunity to directly supply its customers in the northern region of the country.

"I am certain that using our best-in-class operating systems, procurement arrangements, global mindset, and our design and innovation focus, we are well positioned to partner with new and current customers in the FMCG, food and beverage, bakery and office supplies sectors," he added.