Ardagh Group, a Luxembourg-based producer of glass and metal packaging products will invest in its Rugby manufacturing plant in the UK in order to convert its beverage can production capabilities from steel to aluminium.
It is noteworthy that the Rugby plant was first established as a two-line aluminium plant in 1989, and converted to steel in 1996. Its current re-conversion emphasises the fact that demand for aluminium beverage cans is slowly taking away the market of steel cans due to its finer quality, lightweight and infinite recyclability. According to the manufacturer the conversion move would help to strengthen its customer relationship with some of the most well-established beverage brands in the world.
The conversion project will commence in the fourth quarter of 2017 and is expected to be complete during the first quarter of 2018. Ardagh’s production site in Wrexham, as well as other locations across Europe, would try to compensate the capacity loss during the period of conversion.
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According to Ardagh, the investment in the Rugby plant’s manufacturing capabilities indicates the group’s strategy to develop its recently acquired beverage can business agressively.
Recently, the company agreed to acquire select metal beverage can assets from Ball Rexam to support locations and functions in Europe, Brazil and the United States. The $3.42 billion acquisition came after the merge of Ball and Rexam to become the largest can manufacturer in the world.
Commenting on the new investment, Ardagh Metal Beverage CEO Oliver Graham said: “We look at this conversion as a key move in furthering Ardagh’s overall footprint and are confident it will be welcomed by our customers, the Rugby plant and our other key stakeholders.”
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