Beverage can manufacturer Crown Holdings has revealed plans to build a new production facility in Mexico, as it seeks “to meet growing demand”.
Crown will build the plant – in Mexico’s third largest city, Monterrey, less than 100 miles from the US border – on land owned by packaging business Empaque, which it agreed to buy from Heineken at the end of last year. Expected to be operational by May next year, it could produce up to 2bn metal drinks cans every year.
The announcement follows the completion of Crown’s acquisition of Empaque, and will be the fourth such facility that the company operates in the country.
Crown Americas president Djalma Novaes said: “In addition to completing the acquisition of Empaque, the leading producer of metal packaging in Mexico, we are excited to expand further in this country’s key strategic region and meet increasing demand from our customers.”
Abel Quintanilla Coello, president of Crown Beverage Mexico, added: “Mexico is the fourth largest beer market per capita in the world and the second largest market for carbonated beverages per capita, and the new plant in Monterrey has been a key element of our strategic plan. The management of Empaque is pleased that Crown has endorsed our recommendation to proceed with construction immediately.”
Yesterday, the world’s largest drinks can manufacturer, Ball, confirmed terms of acquisition of Rexam that would produce by far the world’s leading can producer. The purchasing power of Crown – currently the world’s third largest can manufacturer – could be significantly diminished if that acquisition continues.
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