SIG Combibloc confirms $70m investment to expand carton packaging capacity by 40% in Brazil

By Jenny Eagle contact

- Last updated on GMT

Aguarela
Aguarela

Related tags: Sig combibloc, Water

SIG Combibloc has confirmed it will spend $70m to expand its carton packaging capacity by 40% in Brazil.

The money will go towards it plant in Campo Largo, Paraná including a new building and equipment to produce packaging, as well as automation of the production lines and a facility to automatically store printing cylinders.

Annual output will be 4.5 billion units

The unit currently produces 3.2 billion packs per year, and after the expansion the annual output will be 4.5 billion units.

Ricardo Rofriguez, CEO, SIG Combibloc South America, said construction work will start in August and the project will be completed by the end of 2016.

In other news, SIG Combibloc has won a deal with Grupo Água de S. Martinho (Aguarela), in Portugal, to package its ice tea in aseptic carton packs with plans to expand into nectars and juices.

Victor Cordoba, head of market area Iberia & France, SIG Combibloc, told FoodProductionDaily this is the first time it has entered the non-carbonated soft drinks (NCSD) segment in Portugal.

The NCSD market is currently experiencing significant growth in Portugal. For health-conscious consumers, foods from one’s own country have greater appeal than imported products​,” said Francisco Ferreira, CEO, Aguarela Group.

Growing consumption of packaged drinking water in Portugal

We’re getting ready to enter this sector with carton packs, because they help retain the quality of the products, they’re convenient for consumers to use in their day-to-day lives, and they have positive characteristics in terms of logistics and the environment​.”

Aguarela Group has seen a growing consumption of packaged drinking water in Portugal. The privately owned and managed business consists of four firms, which have a market share in Portugal’s packaged drinking water sector of around 42% and in the past few years have generated an increase in turnover of around 6% annually.

SIG Combibloc installed a CFA 909 filling machine for filling products in the carton pack combiblocMagnum ​and a CFA 112 filling machine for filling products in the small-format carton pack combiblocMini​ at the company’s production site in Chamusca.

In an initial step, a variety of ice teas are being filled in combiblocMagnum​ 1,500ml with combiSwift screw cap and in combiblocMini​ 200ml.

Related topics: Processing & Packaging, Emerging Markets

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