SIG Combibloc Building First Packaging Plant in South America

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SIG Combibloc, Neuhausen, Switzerland, reports that it is investing in a packaging plant in Brazil. The production site for carton packs will be built in Campo Largo, in the Brazilian Federal State of Paraná. Total surface area of the plant will be 130,000 square meters, 12,000 square meters of which will be constructed during the first phase of building. Construction is already under way, and the first carton packs are expected in the second half of next year. The project involves a total investment of EUR 90 million and several development stages are planned. Once the first stage is completed, production will begin with an annual capacity of one billion carton packs. This can be doubled to two billion packs annually over a short period of time.

Rolf Stangl, CEO of SIG Combibloc Group, notes that "Brazil offers an outstanding environment from an overall economic perspective. Its GDP is enjoying significant growth—an increase of 5.5% is expected for this year. In international terms, it is one of the biggest economic growth markets. Its need for long-life packed food is growing. After China, Brazil has the highest consumption of products in aseptic carton packs—about 10 billion units per year."

According to SIG Combibloc, market analyses indicate that South America will record the greatest growth in demand for milk products, again following China. Aseptic carton packaging will have a clear role to play in this process. Additional demand by 2012 is estimated at 1.5 billion liters of long-life milk in aseptic carton packs, amounting to about 30% of overall growth world-wide. Equally positive development is also expected in the area of alcohol-free and non-carbonated drinks, particularly juices, nectars, and fruit and soy-based drinks. The forecast for South America by 2012 in this regard is for an additional 500 million liters of long-life product packed in aseptic cartons. This represents a 40% share of expected growth world-wide.