Crown Holdings, a supplier of metal packaging, says its Asia Pacific subsidiary will construct a third beverage can line in its Phnom Penh facility in the fourth quarter of this year.
In 2016, Crown Asia Pacific built its Phnom Penh plant which had an annual production capacity of approximately 500 million two-piece, 33cl aluminum drinks cans. Commercial production began by mid-2007.
The company installed a second beverage can line in its facility in Phnom Penh.
This production line went into operation in the fourth quarter of 2011 and had an initial annual production capacity of 700 million two-piece 33cl aluminum beverage cans expanding the plant’s capacity to 1.3 billion cans.
Crown Asia Pacific Holdings says has been able to complete expansion projects on time and within budgets in Cambodia, Myanmar and Spain.
It said also that it was able to meet its expected earnings and cash flow targets in 2018 and 2019.
Company president and CEO Timothy J. Donahue said in the first quarter report for this year: “We will also construct a third beverage can line at the company’s existing plant in Phnom Penh, Cambodia to start production during the fourth quarter.
“We expect to begin production at the new one-line beverage can plant in Yangon, Myanmar, during the second quarter and the new two-line beverage can plant in Valencia, Spain during the fourth quarter.
“The Valencia plant will begin our conversion from steel to aluminum for beverage cans in the growing Spanish market,” Mr Donahue said.
According to the company report, net sales in the first quarter were $2,197 million compared with $1,901 million in the first quarter of 2017, reflecting increased beverage can volumes, the passing of higher material costs to customers, and $121 million from favourable currency transactions.
Income from operations was $221 million in the quarter compared with $225 million in the first quarter of 2017.
Segment income increased to $245 million in the first quarter compared with $226 million in the prior year’s first quarter and included $12 million from favourable currency transactions.
“We are very pleased with the company’s performance during the first quarter and we are on track for an excellent 2018,” Mr Donahue said.
“Adjusted earnings per share rose 22 percent and segment income gained 8 percent over the prior year, led by strong results across most operations.
“Global beverage can volume growth of three percent was fueled by notable gains in Brazil, Southeast Asia and the United States, as consumers in both emerging and developed markets continue to show a preference for cans over other packaging formats.
“To meet this expanding demand, our global beverage can projects remain on schedule,” he added.