The lids, used for both hot and cold disposable cups, are fully compostable and a direct replacement for plastic lids.
The investment at the 300-strong site will increase Huhtamaki's global capacity and footprint in SMF products, complementing its existing SMF production sites in Germany, Holland, and the US, as well as capacity created together with strategic partners in Asia.
Fredrik Davidsson, president, Fiber Foodservice E-A-O, Huhtamaki, officially opened the new moulded fibre lid production line on a visit to Lurgan last week.
Davidsson said: "We are very excited to start supplying locally made smooth moulded fibre lids to our customers also in the UK and Ireland. This investment is a demonstration of our commitment to working with our customers to deliver sustainable packaging solutions from nearby.
"Our technology provides products with superior quality and competitiveness, backed by a 70-year legacy of paper pulping at Lurgan."
