PackagingNews

Ball acquires partners interests in Qingdao plant

Ball Corporation has acquired its partners’ 60% interests in a former joint venture metal beverage can plant in Qingdao, China, and is building a new, expanded plant in Qingdao to meet customer demand.

Ball has owned 40% of the joint venture plant since 1993. The equipment from the existing facility will be relocated to another Ball location in China. Construction on the new Qingdao plant is underway.

Raymond Seabrook, executive vice president and chief operating officer, global packaging, said: “Our volumes in China in the first half of 2011 experienced strong growth compared to the same period last year due to increased market demand and the acquisition of our Foshan joint venture beverage can plant in June 2010.

“The relocation of the existing Qingdao plant offers an opportunity for us to build a larger, high speed plant to supply our customers’ growing demand for beverage cans in northeastern China.”

Ball expects to report an after tax gain of approximately $6m in the third quarter of 2011 on its previous ownership interest in the joint venture, subject to the appraisal of the business.

The new plant will supply both 330ml and 500ml cans which are an increasingly popular size for beer, the company said. It is on schedule to start up by the end of 2011.