Starlinger & Co. GmbH is supplying equipment for a new woven polypropylene sack manufacturing facility being constructed by Grupo Ortiz in Morelia, Mexico.
Grupo Ortiz is spending $16.9 million for four Starlinger tape extrusion lines including winders as well as 200 circular looms for bag production that will increase by 450 million bags to 790 million bags per year. Starlinger said the machinery will be delivered and installed this quarter.
"We want to shake up the raffia bag market by supplying high-quality bags at a very favorable price," Grupo Ortiz CEO Emmanuel Ortiz said in a statement. "Grupo Ortiz and Starlinger have been partners for 40 years and we rely on their unique technology. It allows us to produce premium polypropylene woven bags with low weight at very good cost. This helps us to further expand our market share."
The machinery is going into a new 430,550-square-foot facility in Morelia.
With the production expansion, Grupo Ortiz plans to build on bag sales beyond Mexico to South America and Asia. The company also wants to enter the U.S. market.