Ardagh boosts US food can capacity

By Jenni Spinner

- Last updated on GMT

Related tags: Us

Ardagh Groups new VA facility will output up to 4.5 million food cans daily.
Ardagh Groups new VA facility will output up to 4.5 million food cans daily.
Ardagh Group is planning a metal food can manufacturing facility in VA, with a top capacity of 4.5 million cans daily.

The Luxembourg-based packaging company is investing $93.5 million USD in real estate and equipment purchases. The figure includes approximately $80 million in new packaging production machines.

The move comes after Ardagh inked a deal with ConAgra Foods requiring them to add capacity in the eastern US. After considering locations in KY, NC, MD, WV and other states, they settled on Roanoke County, VA.

The decision to establish a Roanoke County facility was driven by factors such as the business tax structure, cost of living, infrastructure, logistic advantages, proximity to our major customer and the availability of skilled labor​,” said James Willich, CEO of Ardagh’s metal packaging business in the U.S.

Market share

The facility, with an anticipated opening in the third quarter of 2014, includes a total renovation of the structure. The planned daily production capacity of 4.5 million cans would constitute about 5% of the total US food can market.

The new facility is expected to create nearly 100 new jobs. The staff will include skilled machine operators, managers, and support personnel.

Financial support

The county joined forces with the Virginia Economic Development Partnership and the Roanoke Regional Partnership to help secure the project. Gov. McDonnell approved a $750,000 grant from the Governors Opportunity Fund.

Additionally, Ardagh will draw in training funds from the Virginia Department of Business Assistance and will seek industrial rail access funds from the Virginia Department of Rail and Public Transportation. The county is also offering up a performance-based grant of up to $2.45 million USD, based on the company’s investment.

Ardagh has more than 100 facilities worldwide, producing 26.6 billion containers annually. It also has packaging facilities in PA, WV, NY, CA and NV.

Related topics: Processing & Packaging

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