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SIG Combibloc steps up Brazilian investment pace

By Ben Bouckley+

15-Jan-2013
Last updated on 17-Jan-2013 at 14:09 GMT

SIG Combibloc's facility in Paraná state, Brazil
SIG Combibloc's facility in Paraná state, Brazil

Buoyed by 60% growth in Brazil, SIG Combibloc says it has brought forward a planned, phased investment project in a Paraná state plant to produce aseptic carton packs.

By investing more than €36m ($48m) in an extrusion line, leading filler and packaging SIG said it would be possible to laminate unprocessed cardboard for its aseptic carton packs on site.

Asked what kind of product categories the site (pictured) made cartons for, a SIG Combibloc spokeswoman told BeverageDaily.com: "In Brazil, SIG Combibloc produces carton packs for liquid dairy products and non-carbonated soft drinks."

The plant, SIG Combibloc's first in South America, first began operations in mid-2011, and Ricardo Rodriguez, director and general manager, South America, said that the firm was making the planned investment earlier due to strong growth in Brazil.

“We have stepped up a gear on the factory expansion works with a further investment of 100m Brazilian reais…This means SIG Combibloc has now fully completed the project in the originally announced total amount of R$270m,” he said.

The extrusion line will laminated unprocessed carton packs on-site with a polymer and aluminum coating, where inner layers build a liquid barrier for the product, and outer layers keep moisture out.

After the coating is applied, the packaging material is printed, cut to size, stamped and sealed.

SIG quoted Canadean research estimates, to the extent that Brazil is South America’s biggest market for long-life foods packaged into carton packs.

Canadean estimates show that sales of aseptic carton packs totaled more than 13bn units in Brazil in 2012, with sales forecast to increase at a rate of 8% annually up to 2015.

The SIG Combibloc spokeswoman told this publication: "The categories that push this growth rate are: flavored milk products, juices, nectars and other fruit drinks."

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