SIG Combibloc adds Brazil plant

SIG Combibloc is investing in a packaging plant in Brazil. The production site for carton packs will be built in Campo Largo, in the state of Paran&aacute,. Construction work is already under way, and the first carton packs manufactured locally in South America by SIG Combibloc will come off the production line in 2011. This project involves a total investment of EUR90 million. 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, according to SIG Combibloc. When packaging production begins in Brazil, the plant will employ 225 people.
Rolf Stangl, CEO of SIG Combibloc Group, notes, “Brazil offers an outstanding environment from an overall economic perspective. Its GDP is enjoying significant growth – an increase of 5.5 per cent is expected for 2010. 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.”
Market analysis also indicates 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 litres of long-life milk in aseptic carton packs, amounting to about 30% of overall growth worldwide. SIG Combibloc maintains close business relationships with the leading dairies in South America. “One of our approaches is to analyse the market dynamics and to consider the positioning of each of our customers,” Stangl says.