Top 10 latest acquisitions and capacity expansions in the aluminium can sector

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Aluminium cans are the most widely accepted sustainable packaging modules found on the planet, revered for their 100% recyclability and green standards. Beverage cans are constituted out of the purest form of aluminium, which means recycling them results in no or very little material loss, inducing a circular economy throughout the material stream. Recycling aluminium saves almost 95% of carbon emissions conventionally produced during primary aluminium production.

Aluminium containers are used for multiple purposes because they keep the packed product intact for a longer period of time. Aluminium is tasteless and anti-corrosive, which helps in keeping the original flavour of solid or liquid items intact.

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Top 10 latest acquisitions and capacity expansions in the aluminium can sector

Below, it has been pointed out why aluminium cans are now being greatly incorporated into the flagship packaging lines of esteemed global brands:

Energy Use: Recycling aluminium cans saves 95% of the energy required to produce it from bauxite ore. This reduces environmental impact and encourages sustainable production.

Recycling Rate: Aluminium cans are highly recyclable, with an impressive global recycling rate of around 70%. This means that almost seven out of every ten aluminium cans are recycled, leading to a significant decrease in the need for primary production from bauxite. The recycling process for aluminium cans is simpler than any other packaging module, as there is no requirement for intense sorting or separation.

Closed-Loop System: Did you know that aluminium cans have a closed-loop recycling system? This means a recycled beverage can may be turned into a new one and put back on the shelf within just a few weeks. This process is incredibly efficient and helps to make aluminium cans a sustainable option.

Carbon Emissions Reduction: The aluminium industry's shift towards recycling and sustainable practices has resulted in a significant decrease in carbon emissions. It has been found that producing aluminium from recycled content emits approximately 95% fewer greenhouse gases compared to primary production.

Lightweight Attributes: In recent years, significant advancements have been made in the production of lightweight aluminium cans. In fact, the weight of a standard can has been reduced by almost 30% over the past few decades. This not only helps to conserve valuable resources but also results in lower transportation costs and reduced emissions.

The global beverage cans market is predicted to surpass USD 59.6 billion by 2030, with a CAGR of 5.3% from 2023 to 2030. The need for portable and secure packaging solutions is driving the market growth. It is expected to continue to grow at a CAGR of 5.4% throughout the projection period, supported by recycling efforts. In 2019, aluminium recycling increased to 56%.

Some of the major canning line expansions in the last few years:

Coca-Cola: Coca-Cola Europacific Partners (CCEP) recently announced a significant investment of £ 31 million to enhance their Wakefield manufacturing unit. This investment will enable the integration of a new high-end canning line that produces sustainable aluminium beverage cans. The optimised line is expected to be fully operational by 2024, with a 2,000 beverage cans per minute production capacity. Furthermore, the new canning line has been designed to utilise energy and water resources in an efficient manner while also reducing carbon emissions.

Eviosys: Eviosys, the renowned sustainable packaging company, upholds its commitment to being a global leader and local partner. With a €8 million investment in expanding its production capacity, Eviosys is meeting the surging demand for two-piece and EOE round and irregular cans made of both aluminium and steel in the fish, meat, and pet food markets. This investment is a testament to Eviosys' dedication to providing reliable, sustainable, and local packaging solutions for its clients. The growth in the fish market alone highlights the importance of Eviosys' mission to be a trusted partner in the industry.

Orora Beverage: Orora Beverage, an Australian manufacturer specialising in sustainable packaging solutions for the beverage industry, recently announced the launch of its new multi-sized can production line. Estimated at $80 million, the line is capable of producing 200ml boutique-sized aluminium cans for soft drinks, kombucha and alcohol in response to growing demand. Orora Beverage has a strong client base, which includes VB, Mount Franklin and Coke, and currently produces almost 1 billion beverage cans annually. Their expertise lies in the production of market-leading sustainable packaging solutions, with a focus on glass bottles and aluminium cans.

TricorBraun: TricorBraun announced its readiness to acquire CanSource, a leading supplier of aluminium cans packaging, for an undisclosed sum. CanSource has been manufacturing high-quality shrink-sleeved, brite, and printed cans for alcoholic and non-alcoholic drinks since 2011. Their premium aluminium cans are perfect for craft beer, wine, spirits, and other premium beverages. With four production lines situated across the United States and a headquarters in Denver, Colorado, CanSource's acquisition could expand TricorBraun's beverage packaging expertise and boost its presence in the North American beverage packaging industry. It can be understood that not all expansions are literal; some can be referred to as mere transfer of power.

aTULC: Aluminium Toyo Ultimate Can (aTULC) and American Canning are teaming up to revolutionise the craft brewery industry in the US. By utilising a pre-coated aluminium sheet, aTULC offers a much more durable liner that protects against can corrosivity, unlike traditional coatings. This innovative process, created by Toyo Seikan Group Holdings, Ltd. (Tokyo, Japan), not only expands the range of beverages that can be packaged but also contributes to a more sustainable future for our planet. With its infinite recyclability, aluminium cans are already a great option for the environment, and aTULC takes it one step further.

Britvic: Britvic invested £26.9 million to enhance their Rugby factory operations and added a new canning line that can produce over 120,000 aluminium cans per hour. The factory now has four canning lines, with the latest one boosting capacity by 20%. The use of recycled material and 100% recyclability of the cans reduces the company's carbon footprint.

American Canning LLC: American Canning LLC shifted its operations to a new headquarters at Building 5 in Park 183, which is three times larger than its primary facility. The expansion allows them to produce up to 300 million cans per year. They planned to begin production of 12-ounce cans in August and eventually move to 16-ounce cans. A second line dedicated to "shrink-sleeve" cans is expected to produce over 1.5 million cans per week, doubling the current manufacturing capacity. Operations are expected to be fully functional by 2023.

Diageo: Diageo North America shared that they were investing around $80 million to build a new facility in Plainfield, Illinois, which will nurture the capability to produce over 25 million cases of RTDs annually. This includes popular drinks such as Smirnoff seltzers, as well as the newly introduced spirits-based RTD cocktails from Crown Royal and Ketel One Botanicals. The new facility plans to offer two can lines, one with a capacity of 500 cans per minute and another with 1200 cans per minute, and will be ready for commercial production by summer 2023.

Ardagh Group: The collaboration between Greencroft Bottling Company and Ardagh Group has resulted in the launch of the UK's first wine canning line in County Durham. Greencroft Bottling has made a considerable investment of over £ 2 million for the new can-filling line. The line will focus on the popular 200ml and 250ml slimline cans while also accommodating Ardagh's upcoming 187ml Wine Can format. The commissioning and set-up of the can line, along with the establishment of criteria for wine compatibility testing, have been supported by Ardagh. This collaboration has resulted in a significant advancement for the wine industry in the UK.

Ball Corporation: Ball Corporation made plans to expand its manufacturing capacity with two new plants in the UK and Russia, starting operations in 2023 and producing billions of cans annually. The Kettering plant will become Ball's third beverage can manufacturing facility in the UK, while the Ulyanovsk plant will be its fourth in Russia. Ball Corporation has been a game-changer in the aluminium packaging industry thanks to its cutting-edge canning lines. These systems are highly efficient and sustainable, producing aluminium cans in various sizes and designs with unparalleled speed. With an unwavering commitment to innovation, Ball Corporation consistently improves its canning lines to meet the ever-changing market demands.

Novelis

In conclusion, using aluminium containers or cans instead of one-time-use plastic contributes to making the world greener. Aluminium is a renewable material that can retain its original properties even after rigorous recycling rounds. By encouraging a gradual shift to the regular use of aluminium packaging modules, companies can curtail a havoc amount of carbon emissions alongside diverting a load of unusable end-of-life materials from landfills.

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