Dublin, Ireland -- Irish packaging company Smurfit Kappa will boost production in Mexico by rebuilding a mill in that country with equipment shipped from Europe.

The machinery had previously been used at Smurfit Kappa mills in Spain and Germany. Paper machine engineering group PMP said it's been hired by Smurfit Kappa to rebuild a 100,000 metric ton recycled containerboard mill at the company's Los Reyes plant in Mexico.

The reuse of these European machines achieves a twin positive of reducing capacity in Europe and adding capacity where it is required in the company's North American operations, according to a notice from the Davy Stockbrokers firm.