Crown Holdings, Inc. to Expand Two Plants in Brazil to Meet Growing Demand
PHILADELPHIA, March 23 /PRNewswire-FirstCall/ — Crown Holdings, Inc. (NYSE: CCK), a leading supplier of metal packaging products worldwide, today 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.
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 beverage cans in Brazil and the Americas, whether the Brazilian economy will continue to grow, and whether the Company can successfully implement its plans to build and commence production at the plants in Ponta Grossa and Estancia, 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, 2009 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
Crown Holdings, Inc., through its subsidiaries, is a leading supplier of packaging products to consumer marketing companies around the world. World headquarters are located in Philadelphia, Pennsylvania. Please visit www.crowncork.com.
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SOURCE Crown Holdings, Inc.