Growth in South East Asia prompts Ball to invest in Vietnam

By Helen Glaberson

- Last updated on GMT

Related tags Beverage cans Southeast asia Vietnam

Ball has announced plans to build a new beverage can plant in Vietnam on the back of increasing demand from the growing middle class in South East Asia.

The beverage can market in the country is projected to grow by more than 15 per cent annually over the next several years, said Raymond J Seabrook, executive vice president and chief operating officer, global packaging.

“This Vietnam plant fits our long-term strategy to grow our worldwide beverage can business to meet increasing demand from our customers​,” he added.

Joint agreement

The packaging giant has entered into a joint agreement with Thai Beverage Can Limited (TBC) to build the new plant in the Tan Uyen district in Binh Duong province. Ball will hold an approximately 50 per cent economic interest in the partnership.

“We have operated a joint venture beverage can plant in Thailand with Thai Beverage Can since 1996, and have worked closely with our partners as we have expanded into emerging markets,”​ said Seabrook.

Including contributed equipment by Ball, the factory has a total value of approximately $45m and is expected to begin production in the first half of 2012.

Initially, the plant will have an annual production capacity of 850 million cans and will supply contracted customers in Vietnam and export beverage cans to neighbouring countries.

Ball said the factory could also be expanded to meet growing demand.

Growth in emerging markets

Double-digit volume growth in emerging markets such as China and Brazil had helped to drive improved results during 2010, said Ball this January.

The company said it sees great potential in Brazil and has already made investments in the country this year.

Last month Ball announced plans to build a new factory in Alagoinhas, Bahia and the company recently added a second production line to its Tres Rios plant.

In terms of developing the company’s beverage cans business globally, CEO Scott Morrison said, “We are not everywhere yet and there are certain markets that are attractive and that we continue to evaluate.”

In addition to supplying the beverage cans, Ball also produces metal and plastic packaging to the food and household goods markets.

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