Canpack to build new $140m beverage can manufacturing facility in Brazil

By Rachel Arthur

- Last updated on GMT


Related tags Beverage cans Brazil

Canpack S.A., part of the Canpack Group, will increase its manufacturing capacity of aluminum beverage cans with a new production facility in Poços de Caldas, in the State of Minas Gerais, Brazil.

With a total investment of approximately BRL 710 million ($140m), construction of the new facility is expected to begin later this year, with the plant becoming operational in 2024.

The initial total capacity of the new plant will be approximately 1.3 billion cans per year, and its volumes are expected to largely go to Brazilian customers.

Around 140 jobs will be created in the region.

Brazilian packaging investments continue

Headquartered in Krakow, Poland, Canpack says the new facility represents a continued commitment to developing the Brazilian packaging sector.

Earlier this year, the company also announced an BRL 360m ($70m) investment in an aluminum beverage can ends production facility in Manaus (Amazonas).

Together, the total value of both investments exceeds BRL 1 bn, notes Andre Balbi, Group Chief Operations Officer.

“We are dedicated to the Brazilian packaging industry and have been strengthening our presence in this dynamic market since the acquisition of Cia Metalic in December 2016,”​ he said. “This new investment, together with our other, up-to-date investments in Brazil, will give us a better position to serve our customers’ growing needs for beverage cans and ends not only in Brazil, but in the South American region.”

The Brazilian beverage market is the third largest aluminum beverage can market in the world, reaching 33.4 billion can sales in 2021, a 5.2% growth when compared to 2020, according to data from Abralatas.

The Minas Gerais State has seen several investments in recent years in both can manufacturing and wider beverage manufacturing: such a new beverage can plant for Crown announced in 2019 and a glass and beverage can facility from Ardagh in Juiz de Fora.

Fernando Passalio, Minas Gerais State Secretary of Economic Develpment, says “Packaging is one of the five sectors with most investments attracted to our state, from 2019 to date. This is because we have also attracted several beverage companies to Minas Gerais.

"This kind of investment moves the entire production chain and contributes to the jobs generation within the state”.

Abralatas, which is a Brazilian aluminum manufacturers association, also claims the country has one of the highest recycling rates in the world for aluminum cans at 98.7% (the US, in comparison, currently recycles around 45% of beverage cans​).