Crown Holdings To Build New Beverage Can Plant In Spain

 | Sep 10, 2017 10:37PM ET

Crown Holdings, Inc. (NYSE:CCK) divulged plans to build a new plant in the Valencia region of Spain, which will produce aluminum beverage cans to capitalize on growing demand for the same in the Iberian region. Per the company, the location is ideal to meet growing requirements of a number of key customers given its close proximity as well as the excellent local infrastructure and transportation links. It will also support the company’s other facilities during the conversion from steel to aluminum.
The new facility will be located in Parc Sagunt, approximately 10 miles north of the city of Valencia. Crown Holdings currently operates two steel beverage can plants in Spain, in Agoncillo and Seville. The plant is expected to be operational during fourth-quarter 2018. It will initially manufacture approximately 900 million units in multiple sizes on an annual basis. It will also have the scope of further expansion. In the prior stages, the capacity will be utilized to facilitate customers' transitions from steel to aluminum beverage cans. Eventually, it will support growing demand for both beer and non-alcoholic beverage cans in the region.
Crown Holdings is poised to gain from efforts to select growth opportunities through capacity additions in existing plants, new plants in existing markets and potential strategic acquisitions in geographic areas. Further, it will aided by product lines in which the company already operates or that complement existing businesses.