A chain reaction?

In one of my previous blog entries I talked about Brazil being a buzzword in the metal packaging world.

At the time Rexam had announced plans to increase its capacity in Brazil by a further 1.7 billion cans. Since that announcement, and over the last few days, both Ball and Crown have released details of plans to increase capacity in South America.

While I don’t doubt that both companies have been plotting their own moves in Brazil for some considerable time, Rexam’s announcement does seem to have sparked a chain reaction.

Ball’s new facility in Alagoinhas will initially operate one manufacturing line with the capability to make multiple aluminium can sizes.

Raymond Seabrook, Ball’s executive vice president and chief operating officer, global packaging operations, said: “Increasing demand for specialty sizes in Brazil is providing additional opportunities for the can, and the output from our first line is contracted under a long-term agreement.”

Crown’s new plant, in Belem, Northern Brazil, will have an initial annual capacity of one billion cans. It will produce two-piece aluminium beverage cans in multiple sizes.

All of this is good news for the can of course. The strength of growth in Brazil is clearly making companies sit up, take notice and act.

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