West Rock and Grupo Gondi in Mexico will combine their forces to better serve the Mexican market. The two packaging companies will form a joint venture.
Mexico's Grupo Gondi and US company West Rock plan to found a joint venture in order to combine their activities in Mexico under one roof. The joint venture will reportedly become a market leader in the paper and packaging sector and employ around 6,800 people. Realisation of the plan is subject to approval by the Mexican antitrust authority COFECE (Comisión Federal de Competencia Económica).
Grupo Gondi currently runs ten production sites in Mexico. The integrated company owns six paper machines, seven corrugated packaging plants and four carton plants with the necessary printing facilities.
West Rock is the smaller of the two companies in Mexico and will contribute three corrugated packaging plants (in Mexicali, Monterrey and Querétaro) as well as cash into the joint venture. In return, West Rock will receive a 25% stake in the new company which will enter the market under the name of Grupo Gondi.
As the majority shareholder, Grupo Gondi will appoint the managing board of company, which will be headed by Eduardo Posada, while West Rock will provide technical and commercial resources to the joint venture. The Mexican company views the joint venture as a means to better serve its customers across Mexico.