Ball to build can plant in Vietnam
Ball has entered into an agreement with its joint venture partner Thai Beverage Can Limited to build a beverage can manufacturing plant in Vietnam.
The plant will be located in the Tan Uyen district in Binh Duong province. Ball will hold an approximately 50 percent economic interest in the joint venture facility, which is expected to begin production in the first half of 2012.
“The growth of the middle class in Southeast Asia, and the preference of consumers there for beverage cans, continue to increase demand for our containers,” says Raymond Seabrook, executive vice president and chief operating officer, global packaging. “The beverage can market in the region is projected to grow more than 15% annually over the next several years.”
The company has operated a joint venture beverage can plant in Thailand with Thai Beverage Can since 1996.
“This Vietnam plant fits our long-term strategy to grow our worldwide beverage can business to meet increasing demand from our customers,” adds Seabrook.
The one-line plant will have an initial annual production capacity of 850 million cans and will primarily use equipment relocated from other Ball facilities. The total value of the joint venture, including contributed equipment by Ball, is approximately $45 million. The plant will supply contracted customers in Vietnam as well as export beverage cans to adjacent countries, and can be expanded to meet growing demand.