SIG Combibloc is operating its first factory in Brazil at full capacity having completed construction in a year at a cost of €90m.
With an initial capacity to produce one billion carton packs annually, the new factory in Campo Largo, near Curitiba in Brazil has been built to meet fast growing local demand for aseptic cartons.
SIG said it expects the Brazilian aseptic carton market, which accounts for three quarters of South American demand, to grow 6.4 per cent a year and reach a volume of 10 billion litres by 2014.
But the carton packaging specialist intends to beat the market and has already ramped up production to full capacity at its new site.
“In the past year alone, our business in Brazil has increased by 60 per cent. For us, that means our new factory is working at full capacity right from the start,” said Ricardo Rodriguez, head of the South American business at SIG.
“We continue to have ambitious targets, and we want to expand much faster than the market does.”
Future expansion plans
Rolf Stangl, CEO at SIG, explained that the company already has firm plans to expand the new Brazilian site.
“In a further stage of expansion within just two years’ time we will be doubling the capacity to two billion carton packs,” said Stangl.
The CEO added that having the factory in Brazil would help SIG improve its customer service.
“We’re able to respond more quickly and flexibly to customer needs. And in addition, having a local presence with a production plant here means clear advantages when it comes to logistics and service”.
The Brazilian factory will produce both small and mid-sized cartons of up to 1,100 ml for food and drink manufacturers.