SIG Combibloc has decided to set up a production plant in Brazil, so the firm can enhance the rate of production to meet the demands of growing carton market.
SIG Combibloc, carton maker, has decided to set up its first South American production plant with the construction of a €90m (£75.2m) capacity in Brazil. The construction of the plant is underway, which is located in Campo Largo in the state of Parana.
The production is expected to commence in 2011. The first phase of production would be to manufacture 1bn cartons a year, which the managers of the firm have targeted to double to 2bn annually.
Rolf Stangl, the chief executive of SIG Combibloc, has asserted that the market condition is outstanding and taking into account the growing carton market in South America, the company has taken the decision to enter this region and make further investments.
The firm is expected to receive a GDP of 5.5% in 2010. The chief executive added, “After China, Brazil has the highest consumption of products in aseptic carton packs – about 10bn units per year”. The plant is planned to be constructed on a 130,000 sq. m site.