Construction will start during the second half of 2012 and is expected to reach full capacity by the summer of 2013.
The Villalbilla-based site will replace the current rented Alcalá plant and will produce trays and corrugated carton boxes for the food and beverage industry.
Vice-president and general director of International Paper in Europe, Middle East and Africa (EMEA), Greg Gibson, said the new facility would improve capacity and enable growth into new markets.
"It's an inspiring investment for the future of our clients, our business and our employees, as it will allow us to offer more quality and better service to our clients in a modern, viable and low costplatform," said Gibson.