Constantia Flexibles invests €80M in Austrian facility to boost European aluminum foil production
19 Oct 2022 --- Constantia Flexibles is investing over €80 million (US$78.9 million) into its facility in Austria to build a new rolling mill and another lacquering line, which will allow the group to secure its supply chain and strengthen its position in the aluminum market.
This company also says the investment will lower its CO2 footprint by powering the rolling mill with “green electricity” and adding solar power generation.
“We continue to pursue our successful growth strategy with new state-of-the-art technology at our Teich factory,” says Pim Vervaat, CEO of Constantia Flexibles.
With the new rolling capacity, Constantia Teich will produce a total of 90,000 tons (+30%) of aluminum foil in Austria in the future, making the company the largest integrated producer in Europe.
By producing the foils at Constantia Teich, the carbon footprint is significantly lower than purchased foils from outside Europe, says the company. This will avoid over 100,000 tons of CO2 as a result. In addition to the positive impact on the eco-balance, the company can secure the supply chain through in-house production.
The investments will boost production of environmentally sustainable aluminum foil.“We are more independent and therefore more crisis-proof,” emphasizes Dr. Gerald Hummer, executive vice president of the Aluminum Division.
Foil production techniques
The foils will be manufactured using high-end primary materials from Constantia Flexibles’ European partners. An increasing proportion of the company’s material comes from recycled secondary aluminum.
The investment in the foil production facility also includes a complete expansion package covering structural and infrastructural measures. The plant will be further expanded by investing in a slitting line, annealing furnaces and expanding the existing high-bay warehouse.
The start of commercial production is expected in spring 2025. Production will be primarily for high-end packaging in the pet food, food, pharmaceutical and coffee segments.
In addition, Constantia Flexibles intends to increase its capacity in strategic growth areas, such as coffee capsules, for which the new lacquering machine and ancillary equipment will be used. On the roof of some of the buildings, solar panels measuring several thousand square meters will be installed.
Aluminum troubles
Constantia Flexibles’ investment comes at a time when the European aluminum market is facing severe trouble. Recently, PackagingInsights spoke with industry association European Aluminium, who explained that rising energy prices threaten to destroy the market.
A letter signed by dozens of metal industry players was also recently sent to the European Commission, warning that without political intervention, the EU could face “permanent deindustrialization.”
This could also severely impact climate change targets, as cheaper metals made through more energy-intensive means – primarily from countries like China – will take over Europe’s supply chain.
Edited by Louis Gore-Langton
