Crown to Invest in Its Sixth Can Plant in Brazil to Meet Growing Demand
Crown Holdings, Inc. (NYSE: CCK) announced plans to build its sixth beverage can plant in Brazil, expanding its annual production capacity to 13.3 billion cans. The facility will be located in Minas Gerais, with the first production line set for Q2 2022 and the second for Q4 2022. This expansion aims to meet the rising demand for aluminum beverage cans in the region. Crown has been operating in Brazil since 1942 and emphasizes the sustainability and recyclability of aluminum cans as key advantages in the market.
- Expansion of production capacity to 13.3 billion cans annually.
- First production line expected to begin in Q2 2022, enhancing operational efficiency.
- Strong market presence in Brazil, established since 1942.
- Potential risks in demand sustainability for aluminum beverage cans.
- Uncertainties regarding the timely implementation of the new plant.
YARDLEY, Pa., Jan. 19, 2021 /PRNewswire/ -- Crown Holdings, Inc. (NYSE: CCK) (Crown) announced today that its Brazilian subsidiary CROWN Embalagens S.A., plans to build its sixth beverage can plant in Brazil. The new two-line facility will produce two-piece aluminum cans in multiple sizes and have annual capacity of 2.4 billion cans when fully operational. The first line is expected to begin production in the second quarter of 2022, followed by the second line in the fourth quarter of 2022.
The new plant will be located in Minas Gerais State, southeast Brazil to meet the growing demand in the region for beer and soft drink cans. Crown has been operating in Brazil since 1942 and has a strong presence with two-piece aluminum beverage can plants in Cabreúva (São Paulo State), Estância (Sergipe State), Ponta Grossa (Paraná State), Rio Verde (Goiás State), Teresina (Piaui State) and a beverage end plant in Manaus (Amazonas State). The new plant will expand Crown's annual production capacity in Brazil to 13.3 billion cans.
"Brazil is an important growth market for us and our partner, Évora S.A. This expansion will help meet the country's increased demand for beverage cans and demonstrates Crown's continuing commitment to grow with our customers," commented Djalma Novaes, President of Crown's Americas Division. "The aluminum beverage can is perfect for the Brazilian market; it is recyclable and sustainable, is shipped easily and most efficiently preserves the quality of the beverage product for the ultimate consumer."
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, all other information in this press release consists of forward-looking statements. These forward-looking statements involve a number of risks, uncertainties and other factors, including whether demand will continue to grow for two-piece aluminum beverage cans in Brazil and globally, and whether the Company can successfully implement its plans to construct a new plant and meet related time and production targets (including obtaining any required consents and approvals which could delay or prevent expansion), that may cause actual results to be materially different from those expressed or implied in the forward-looking statements. Important factors that could cause the statements made in this press release or the actual results of operations or financial condition of the Company to differ are discussed under the caption "Forward-Looking Statements" in the Company's Form 10-K Annual Report for the year ended December 31, 2019 and in subsequent filings made prior to or after the date hereof. The Company does not intend to review or revise any particular forward-looking statement in light of future events.
About Crown Holdings, Inc.
Crown Holdings, Inc., through its subsidiaries, is a leading global supplier of rigid packaging products to consumer marketing companies, as well as transit and protective packaging products, equipment and services to a broad range of end markets. World headquarters are located in Yardley, Pennsylvania. For more information, visit www.crowncork.com.
For more information, contact:
Thomas T. Fischer, Vice President, Investor Relations and Corporate Affairs, (215) 552-3720
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SOURCE Crown Holdings, Inc.
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