CanPack plans to invest R$250m to produce 37 billion caps a year by the end of 2023
06/24/2022
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With CanPack’s cap factory, the capital of Amazonas now houses four such units in its industrial district — Foto: Reprodução/CanPack
CanPack, a Polish company that makes aluminum cans for beverages, will invest R$250 million in the construction of a cap factory for cans in Manaus. The company already produces cans in two units — one in Ceará and another in Goiás.
With CanPack’s cap factory, the capital of Amazonas now houses four such units in its industrial district. Companies typically set up these operations in Manaus to take advantage of the Free Trade Zone’s tax breaks.
Currently, three multinationals already operate in the city of Manaus — Ball Corporation, a leader in the cans market in the country, the also U.S.-based Crown Embalagens and the Irish group Ardag, through its subsidiary AMP.
According to a note by Abralatas, the manufacturers’ trade group in Brazil, the first can factory was installed in Manaus in 2006. With the arrival of the others, the industrial hub in the capital is already part of the largest production cluster of this product in the world.
AMP’s unit, for example, is reaching a capacity of 5 billion units, and this figure is expected to double in two years to meet its expansion program in Brazil.
“The can market is in a unique moment. And Manaus is the city that has become the world’s producing hub for can caps, and it will become even stronger with this new unit in 2023,” said Abralatas head Cátilo Cândido in the note.
With 25 manufacturing units installed, the Brazilian production reached 33.4 billion packages of several sizes last year. The most recent investments are three units in the state of Minas Gerais — Frutal (Ball), Uberaba (Crown) and Juiz de Fora (AMP).
CanPack, according to Abralatas, informed that it will start assembling the cap factory in 2023. According to Mr. Cândido, Manaus is also logistically important for the manufacture of caps. “The city already accounts for more than 80% of the total production of this packaging component,” he said.
Manaus is now expected to jump to 37 billion by the end of 2023 from the current 25 billion caps produced per year.
The sales of aluminum cans for beverages in Brazil grew 81% in the last decade (2011 to 2021) with an average growth of 8% per year in the past five years, says Abralatas. One advantage of this segment is the high rate of recycling — almost 99% last year, the highest in the world.
*By Ivo Ribeiro — São Paulo
Source: Valor International