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Metal packaging: Crown to expand plants in Brazil

Crown Holdings, Inc. a supplier of metal packaging products worldwide, announced that its Brazilian subsidiary, Crown Embalagens S.A., plans to double the production capacity of its Estancia, Brazil beverage can plant as well as double the planned capacity at its beverage can plant currently being constructed in Ponta Grossa, Brazil. This investment is being made to meet the growing demand for beverage cans for beer and soft drinks in Brazil and entails the addition of a second beverage can line at both locations.

The new capacity of three production lines, including the one previously announced for Ponta Grossa last September, is expected to begin production in the second quarter of 2011. The existing can line in Estancia began production in the first quarter of 2009. When fully commercialized, these plants will each have an annual production capacity of approximately 1.8 billion cans in multiple sizes, including 12 ounce and 16 ounce.

Once completed, Crown's annual production capacity in Brazil will be approximately 6 billion beverage cans and ends across four plants including its beverage can plant in Cabreuva and its beverage end plant in Manaus. Both the Estancia and Ponta Grossa properties allow for further expansion.

"We are particularly excited to continue our expansion in the fast growing and underserved markets for beverage cans in Brazil," said Raymond L. McGowan, President of Crown's Americas Division. "This is a significant investment for us and our partner Petropar S.A. and demonstrates our view of the vitality of the Brazilian economy and its prospects for growth. Looking ahead, Crown is excited about the prospects for further growth and is nicely positioned to serve the coming 2014 FIFA World Cup and the 2016 Summer Olympic Games, both of which will be held in Brazil."

Estancia is in the state of Sergipe in northeastern Brazil and is approximately 200 miles north of Salvador and approximately 350 miles southwest of Recife. Ponta Grossa, in southern Brazil, is in the state of Parana and is approximately 325 miles southwest of Sao Paulo and approximately 75 miles northwest of Curitiba.

SOURCE: Crown Holdings, Inc.


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