Ardagh enhances metal can business with US$1.8bn investment amid promising Q3 results

30 Oct 2020 --- Ardagh Group is investing over US$1.8 billion in organic business growth projects between 2021-2024. Approximately 85 percent of the investment is in the global supplier’s metal can businesses, underpinned by long-term customer contracts.

News of the investment comes as the Luxembourg-based company reports a US$43 million Q3 profit, compared to a US$29 million loss in Q3 2019.

“The Group performed very well in the quarter in a challenging operating environment, with continued strong growth in Metal Beverage Packaging and resumed volume growth in Glass Packaging, as on-premise channels re-opened,” notes Paul Coulson, Ardagh’s chairman and CEO.

“Our 2020 US$250 million Business Growth Investment program has progressed well and will deliver new beverage can capacity in North America later this quarter.”

“In addition, given a very favorable long-term outlook for sustainable packaging, we plan to invest over US$1.8 billion in organic growth projects ... principally in our beverage can business.”

Ardagh’s customers include Nestlé, Coca-Cola Diageo, Heineken and Pernod Ricard.

Can capacity increases in US
Ardagh reports its 2020 US$250 million Business Growth Investment program remains on track, with two new beverage can lines due to commence production in Olive Branch, Mississippi, US, by the end of the year.Approximately 85% of Ardagh’s US$1.8 billion investment will go to its metal can businesses.

According to Claude Marbach, Ardagh Metal – Beverage North America’s CEO, the new production capacity addresses the increased demand for infinitely recyclable beverage cans and complements a growing Ardagh beverage can manufacturing network.

“This is one of a number of significant capacity expansion investments we are initiating to meet growing demand, as consumers and customers increasingly recognize the sustainability advantages of beverage cans,” explains Marbach.

“Beverage cans deliver high recycled content rates, often driving the effectiveness of municipal recycling systems due to the inherent value of aluminum. And with ideal filling, distribution and retail display economics, beverage cans enable customers to further build their brand and bottom line.”

The plant’s new production is initially focusing on the Ardagh Sleek line, can sizes increasingly popular with hard seltzers, beer, energy drinks and teas.

The additional capacity is strengthening a full range of product sizes available to customers from a network of eight beverage can and end manufacturing locations throughout the US.Ardagh recently secured a new customer for its slim 250 ml can in collagen protein drink producer Black Labels Company.

In September, Ardagh secured a new customer for its slim 250 ml can in collagen protein drink producer Black Labels Company.

In August, wine producer and exporter Producto de Aldea selected Ardagh’s 250 ml Slim Wine Can for its premium wine drinks and wines, previously sold in a classic glass bottle.

The Maluma range is presented in a light, bright and contemporary matte aesthetic aluminum can, reflecting the brand’s “clean-living” image.

Alliance with TricorBraun WinePak
In the US wine market, Ardagh Group, Glass North America business unit is selecting TricorBraun WinePak, a division of packaging leader TricorBraun, as its exclusive wine distributor to service small and mid-sized wineries in the western half of the US.

The renewed collaboration reinforces TricorBraun WinePak’s position as a key member of Ardagh’s distributor portfolio, allowing the two companies to expand and attract new business.

“For small to mid-sized wineries, TricorBraun’s customized service and supply chain expertise combined with Ardagh’s high-quality domestic wine bottle production means economical, creative and sustainable packaging,” says Kathy Brooks, TricorBraun WinePak’s regional vice president and general manager.

The alliance is providing an extensive service offering to wineries, including premium wine bottles in a variety of colors, sizes, styles and finishes, and full decorating services, capsules, Stelvin closures, state-of-the-art repacking capabilities, enhanced custom packaging design and engineering services.For every ton of glass recycled, the industry saves 580 kg of CO2, Ardagh says.

Lockdown-inspired glass recycling hikes
According to Ardagh research, European households are embracing glass recycling during lockdown.

With the closure of bars and restaurants in the initial phase of lockdown, people consumed more foods and beverages packed in glass at home, leading to an increase in the volume of glass being recycled via domestic recycling streams.

The actual increase in glass recycling varied by country, with 40 percent of people in the UK and Poland, and 21 percent of people in Germany, indicating they were recycling more glass.

Glass recycling companies in the UK confirm they have seen a significant increase in household recycling rates since lockdown.

The research also shows that recycling methods vary due to differences in national collection infrastructures. In Germany and Poland, the most common way to recycle glass is via glass banks, with 86 percent of households in Germany and 72 percent in Poland saying they “always” or “often” use glass banks to recycle glass.

For every ton of glass recycled, the industry saves 580 kg of CO2, enough energy to charge 74,000 smartphones, Ardagh says.

By Joshua Poole