Ball Corporation has revealed plans to build a one-line beverage can manufacturing plant in Asunción, Paraguay, and to add capacity in its Buenos Aires, Argentina, facility.
The company said that these investments will allow the company to serve the growing beverage can market in Paraguay, Bolivia and Argentina, and to support various customer demands with multiple can sizes.
Last November, Ball recorded a 5.8% increase in sales in its third-quarter results, due to strong demand for cans in Latin America.
In its South American Beverage Packaging Unit, sales were up 33.6% to $425 million. Segment volumes were up double digits with mid-single digit growth in Brazil.
The Asunción plant is expected to begin production in the fourth quarter of 2019 and its capacity is contracted under long-term agreements.
Carlos Pires, Ball Corporation president of beverage packaging in South America, said: “The economy is growing and demand for aluminum beverage packaging is increasing in Paraguay and surrounding countries, as more people are consuming beer and other refreshing drinks and more customers are converting to more sustainable, infinitely recyclable beverage cans.
“In Argentina, cans will continue to grow and volumes will likely double from 2016 to 2019. These investments will allow us to broaden our geographic reach into a new and growing market, as well as be closer to our customers in the area, which aligns with our long-term vision for growth.”
Last August, Ball revealed the closure of several plants in the US in a bid to drive efficiencies. Production will cease this year at its plants in Birmingham, Alabama, Chatsworth, California, and Longview, Texas. Existing customers will be supplied by other Ball facilities.
© FoodBev Media Ltd 2019