Klingele continues expansion in West Africa

30.08.2021

The Klingele Paper & Packaging Group, one of the leading independent manufacturers of corrugated base paper and corrugated packaging, is continuing its successful expansion in West Africa with a new processing plant near Dakar, Senegal. Production is scheduled to start in summer 2022; in a first step, around 45 jobs will be created. For this commitment, Klingele is receiving financial support from the state-owned German Development Finance Institution (DEG).

Klingele has been present in Mauritania since 2013 and now has two production plants there, which mainly manufacture packaging for customers in the fishing industry and industry in general. A new plant with two production lines is now being built in the Diamniadio industrial park in Rufisque, near the new port of Dakar: The corrugated board sheets from Klingele subsidiary Klingele Embalajes Canarias in Tenerife will be processed into finished packaging there. The production hall has already been completed; in the first half of 2022, Klingele will install a Case Maker Inline machine with four colours, a Ward rotary die-cutter with three colours and five Boix carton erectors in its new processing plant. The packaging will be used primarily in agriculture, as well as in the fishing and other food industries. The plant will start with a production capacity of 4,000 tonnes, but expansions of the site are already planned as volumes grow. In the future, Klingele wants to cover West African markets from Morocco to Gabon.

High demand for packaging

Economic growth in Senegal averaged more than six per cent in the years before coronavirus. A high degree of political stability, legal certainty and an investment-friendly climate are attracting more and more foreign companies. Above all, however, the government is endeavouring to reduce its dependence on food exports in particular. Its promotion of the sector is reflected in growing yields, for which packaging is then also required as a consequence. Senegal is also the gateway to the West African region with a population of around 116 million people and offers good logistical connections.

Financing received from DEG

The investment volume for the project in Senegal is around 7.5 million euros, five million of which is being financed by DEG, which is wholly state-owned, via the "Africa Connect Programme". The prerequisite for funding is responsible corporate behaviour, which also contributes to the 17 sustainability goals of the United Nations. Above all, the creation of skilled jobs with prospects plays an important role. In an initial phase, Klingele will employ over 40 people at its plant, including local workers without formal qualifications who find it particularly difficult to find work on the labour market.

Development of West African markets

By establishing local production capacities in Senegal, Klingele aims to tap into new West African markets in particular, including the Ivory Coast, Ghana, Cape Verde, Mali and Burkina Faso. Klingele is in pole position for this in Dakar. In addition, the new commitment offers Klingele the opportunity to optimally utilise the capacity of the Wellpappe plant of Klingele subsidiary Klingele Embalajes Canarias in Tenerife, where there is hardly any local growth potential.

However, Klingele's declared aim is also to export its own sustainable business model to Africa and to create local jobs with prospects: apart from the plant manager Guillermo Boué from Tenerife, the new plant will employ almost exclusively local people. Klingele intends to cover almost 100 per cent of the plant's energy requirements from renewable sources, in particular solar energy.

We are delighted that DEG has placed its trust in us - and look forward to implementing our principle of sustainable business in Senegal," emphasises Dr Jan Klingele, Managing Director of Klingele. "With our packaging, we are improving the supply of food to the population and expanding local value creation on site. What's more, we employ almost exclusively local people and thus support the improvement of local living conditions."

"As a German investor, Klingele is still one of the pioneers in West Africa. In recent years, however, we have built up good, trusting contacts in the region, which are now paying off. Today, we have already established a good reputation with the companies in our most important target sectors, which we can continue to build on."
Plant manager Guillermo Boué