Ball and Crown invest in Brazil

By Helen Glaberson

- Last updated on GMT

Related tags Brazil

Packaging giants Ball and Crown have both announced plans to build new beverage can plants in Brazil as part of their wider growth strategy to expand further in emerging markets.

Ball announced yesterday that Latapack-Ball Embalagens, the company's majority-owned beverage can joint venture in Brazil, plans to open a factory in Alagoinhas, Bahia.

The plant will initially operate one manufacturing line for multiple aluminum can sizes, and is expected to start up in early 2012.

Raymond J. Seabrook, executive vice president and chief operating officer of global packaging operations said, "The beverage can continues its strong growth in Brazil, and Alagoinhas is located in northeast Brazil, one of the fastest growing regions in the country."

Ball investment

The company also recently added a second production line to its Tres Rios plant in Brazil during the first quarter of 2011.

Seabrook​said that increasing demand for specialty sizes in Brazil was providing additional opportunities for the can.

“The durable, light weight and 100-percent recyclable beverage can is a perfect match for the developing Brazilian market and is the package-of-choice for consumers there and elsewhere in the world," ​said Seabrook.

Crown investment

Beverage packaging supplier Crown Holdings has also announced plans to expand in the country. The metal packaging supplier is to invest in a new plant in Belém, Brazil and will produce two-piece aluminum beverage cans in multiple sizes.

The Crown plant will be looked after by its subsidiary Crown Embalagens SA in Northern Brazil and is expected to be operational in the first quarter of 2012.

Crown said the unit will have an initial annual capacity of 1bn cans and will be designed to support additional production lines.

Expansion into fast growing emerging markets has helped Crown to grow beverage can volumes by double digits in the final quarter of 2010.

On announcing its Q4 results, Crown voiced its plans to build on existing expansion work in emerging markets.

Company spokesperson Michael Dunleavy said that Crown was planning to open two plants in China and one in Brazil this year. In 2012 the company has plans to build another in Brazil two plants in China, and another in Turkey.

Raymond L. McGowan, President of Crown's Americas Division, commented, “Belém, the capital city of Pará, has a population of over 2m people and is strategically located at the entrance to the Amazon region. It is an ideal location from which to expand to meet growing customer demand for beer and soft drink cans.”

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