Winpak plans large-scale expansion at Winnipeg packaging plant

Winnipeg Free Press

16-05-2025

A major manufacturer has a Winnipeg expansion underway that involves turning food into food packaging.
Winpak Ltd. is adding 210,000 square feet to its Saulteaux Crescent facility. Once complete, the US$100 million expansion will house the production of recyclable packages.
Starch — the byproduct of potato and pea protein processing — is expected to be a shining star. By current plans, starch will be used to create packaging for pasta, lunch meat and a swath of other products.
'We're taking a product that's typically down-cycled, goes to a landfill, and turning it into a value-added product,' said James Holland, president of Winpak Division (an arm of Winpak Ltd.) and Winpak Films.
Winpak is part of a global packaging group and counts 13 North American manufacturing plants, its website reads.
PepsiCo, Nestlé and Walmart are on its customer list. Winpak products come in the form of Keurig pods and Cesar dog food tins.
Oliver Muggli, Winpak's chief executive, said the new addition to the company's Winnipeg plant should be operational early next year.
The first line — 65 metres long — will focus on 'recycle ready' materials. Meat, cheese and medical device packaging will be in the queue.
Muggli expects to ramp up operations on the central line over six years. Roughly US$100 million worth of material can be outputted at capacity, he said.
The site will have space for three lines. Winpak will ask board members for approval of the second line next year; realistically, the line will be added in 2027, Muggli said. A third line could arrive between 2027 and 2030.
'Eco-form' products will be made, using starches, on the second line.
'Starch, surprisingly, has very good oxygen barriers,' Muggli said. 'It's good for protecting food product from deterioration.'
Manitoba potato processing plants and Roquette, a pea protein business in Portage la Prairie, will be tapped for their starch byproduct, Muggli continued.
Winpak hasn't yet sold packaging using its starch process. It's been developing procedures with the National Research Council for the past 11 years.
The new facility will have a space to showcase products to customers and a research and development area.
Muggli anticipates hiring 30 to 40 people per line. The lines are complicated and the jobs are 'fairly sophisticated,' he added.
Tariffs haven't affected the building's creation or Winpak's Winnipeg operations. However, the company's Quebec plant has been hit — it converts aluminum into items like yogurt lids before shipping such goods to the United States.
U.S. President Donald Trump placed 25 per cent tariffs on steel and aluminum imports in March. Canada reciprocated with levies of its own on U.S. steel and aluminum.
'It is, of course, an issue,' Muggli said. 'However, our competitors in the U.S. are facing the same tariffs, so it's kind of a level playing field.'
Overall, the trade war is creating inflationary pressures that are passed to clients, who then pass those to U.S. consumers, Muggli relayed. He deemed 2024 a 'very successful year.'
Winpak saw a 5.4 per cent year-over-year increase in its earnings before interest, taxes, depreciation and amortization (EBITDA), reaching US$240.8 million. Its revenue, US$1.13 billion, decreased 0.9 per cent during the same time frame. Winpak's 2024 annual report cited selling price and mix changes as change contributors.
Net income attributable to Winpak equity holders reached a record $149.5 million in 2024.
Uncertainty hovers, but as of right now, Muggli expects 2025 to be 'another year of new records.'
Winpak marks its 50th anniversary in 2025. Winnipeg Mayor Scott Gillingham presented the company with a community service award at its annual shareholders meeting Thursday.
'Thank you for not just your investment today, but your commitment to building Winnipeg and our economy in the future,' Gillingham said, adding a half-century in business 'doesn't happen by accident.'
Winpak employs upwards of 1,000 people in Winnipeg. Wihuri International Oy, a Finnish conglomerate, is majority shareholder.
Earlier this week, Winpak celebrated its recent $100,000 donation to the Grace Hospital. The health-care facility renamed its emergency department waiting area after Winpak's retiring board chairman, Antti I. Aarnio-Wihuri.
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Gabrielle PichéReporter
Gabrielle Piché reports on business for the Free Press. She interned at the Free Press and worked for its sister outlet, Canstar Community News, before entering the business beat in 2021. Read more about Gabrielle.
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