Ball Corporation will cease production at its beverage packaging plant in the city of Cuiabá in Brazil as it aims to reduce costs.
The Cuiabá site opened in 1998 and employs approximately 70 people, some of which will transfer to other Ball locations.
Ball operates 13 plants in South America and earlier this year it announced plans to build a one-line beverage can manufacturing plant in Asunción, Paraguay. The company said the investment will allow it to serve the growing beverage can market in Bolivia and Argentina, and to support various customer demands with multiple can sizes.
Speaking of the plant closure, Carlos Pires, president of Ball beverage packaging South America, said: “Absorbing this one-line can plant into Ball’s remaining network of 13 plants in South America allows us to reduce our cost structure while continuing to effectively and efficiently supply our customers with the most sustainable package in the beverage supply chain.”
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.
Last month Ball announced it will sell its US steel food and aerosol packaging assets to form a new joint venture, after agreeing a $600 million deal with private equity firm Platinum Equity.
Ball expects the sale and joint venture transaction to close in July, and approximately 1,300 Ball employees will transfer to the new joint venture company.
The firm is currently carrying out a series of site closures in the US as it aims to boost efficiencies.
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