Crown to expand capacity to meet rising Brazilian demand

By Caroline Scott-Thomas

- Last updated on GMT

Related tags Fifa world cup

Crown Holdings has announced that it intends to double capacity at two Brazilian beverage can plants on the back of growing demand for soft drink and beer cans in the region.

The move is just the latest expansion for the company in emerging markets around the world. Last week, Crown said it would build a beverage can plant in Hangzhou, China with an initial production capacity of 600m cans. And in July last year, the packaging giant acquired a drink cans facility in Vietnam, boosting its beverage can production by 600m a year in South East Asia, while signaling further output in the future.

Crown’s Brazilian subsidiary, Crown Embalagens S.A., plans to double production capacity at its existing plant in Estancia, its parent company said, as well as double the planned capacity of its Ponta Grossa plant, which is currently under construction. This involves adding a second beverage can production line at both locations.

President of Crown's Americas division Raymond McGowan said: "We are particularly excited to continue our expansion in the fast growing and underserved markets for beverage cans in Brazil. This is a significant investment for us and our partner Petropar S.A. and demonstrates our view of the vitality of the Brazilian economy and its prospects for growth.”

The Ponta Grossa facility is expected to start production in the second quarter of 2011, with an annual capacity of about 1.8bn cans. The Estancia facility, which started production in the first quarter of 2009, is also expected to have capacity to produce 1.8bn cans a year in various sizes, including 12oz and 16oz.

McGowan added: “Looking ahead, Crown is excited about the prospects for further growth and is nicely positioned to serve the coming 2014 FIFA World Cup and the 2016 Summer Olympic Games, both of which will be held in Brazil."

Once the new beverage can capabilities are completed at Crown’s Estancia and Ponta Grossa plants, the company will have annual capacity of about 6bn beverage cans and ends in Brazil, including from its other existing beverage can facilities in Cabreuva and its beverage end plant in Manaus.

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