Beverage boom drives Crown Mexican expansion

By Neil Merrett

- Last updated on GMT

Related tags Brazil

Crown Holdings yesterday announced it is to construct a $48m
beverage can production plant in Brazil to cater for growing demand
from the region's processors for packaging materials.

The site, which will be run through the group's Brazilian subsidiary Crown Embalagens, is expected to boost the group's annual capacity in the country by 700m cans by the time it becomes operational, expected to be in late 2008. The move will further boost supply for beverage processors in the country, as the industry comes under further cost pressures for packaging materials due to a record rise in cost for aluminium. The plant, to be built in Northeast Brazil, is the group's third production site in the country alongside their operations in Cabreuva and a beverage end plant in Manaus. The sites by 2009 are expected to boast an annual production capacity of 3bn cans, according to estimates by Crown Embalagens. Despite its existing presence in the country, Frank J. Mechura, president of the company's Americas division said the additional capacity would be needed to meet demand amongst beverage manufacturers. "Demand for aluminum beverage cans in Brazil is strong and the positive trends are expected to continue with an improving Brazilian economy,"​ he stated. "This expansion demonstrates our commitment to support the growing needs of our global and local customers and to help them continue to build their brands in the region."​ The move comes on the back of a recent announcement from the company that it will double its production capacity in Spain amidst similar strong demand for canned beverages in the country.

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