SIG Combibloc Carton Packaging Plant, Parana, Brazil

Germany-based SIG Combibloc completed the first phase of construction of its first packaging plant in Brazil in July 2011.

The new plant is located in Campo Largo near Curitiba in the state of Paraná and will manufacture aseptic carton packs. SIG is investing of €90m ($113m) in the construction of the plant.

The site is spread over an area of 130,000m². The first phase included construction of over 13,000m² of the new plant.

The new facility will initially manufacture about one billion carton packs annually and employ 225 people.

Capacity will be ramped up to two billion packs per year during the project's phase II, which is scheduled for completion by 2013.

SIG chose Campo Largo for its facility because of its excellent road, ferry and air links. A well trained and skilled workforce is available and about 225 people are expected to be employed at the new plant.

SIG Combibloc packaging systems

The new plant will initially manufacture combiblocStandard, combiblocMidi and combifitMidi carton packs. The combiblocStandard and combiblocMidi packs are available in 500ml, 750ml and 1,000ml capacities.

The combifit packs are a premium version with a slanted top. The packs are slim and their shape makes them easy to hold. They are available in five formats with capacities ranging from 150ml to 1,500ml.

SIG produces combibloc packs in nine different base formats. Filling volumes of the packs range from 125ml to 2,000ml. These carton packs are used to fill juices, milk, soups, sauces, tomato products and desserts.

The combibloc cartons are easy to store and transport. They feature a sleeve system, which ensures that no uncoated edges are present to contaminate the product.

Using SIG technology, the packaging material used in producing the carton is coated, printed and cut into the desired shape. It is then sealed with a special longitudinal seam to create a flat sleeve.

Initially, the plant will only convert the carton packs with paper sourced from Scandinavian suppliers. Whole packages will be produced later with paper sourced from local suppliers.

SIG is in talks with paper manufacturers such as Suzano, CMPC and Klabin to supply paper to the new plant. With the completion of different phases of construction of the plant, other package formats will be produced.

South American benefits

The new SIG Combibloc plant is part of the SIG growth strategy to tap into the South American market. Demand for carton packs in the region is expected to grow at a rate of 30-40% over the next two to three years. With the construction of the new plant, SIG will be able to supply its products to customers in the market.

The South American market is experiencing an increase in demand for milk products, non-carbonated drinks and soya-based drinks. The market will become the second largest in demand for milk products.

By 2012, it is expected that about 1.5 billion litres of milk will be packed in aseptic cartons. In addition, by 2012, about 500 million litres of non-carbonated drinks and soya-based drinks will be packed in carton packs. This is expected to boost demand for aseptic carton packs in the region.

Brazil especially is experiencing significant growth and its GDP is expected to increase by 5.5% in 2010. Growth of the economy has increased demand for long-life packed food. This, in turn, has increased demand for aseptic carton packs.

The country is the second largest consumer of aseptic carton packs in the world with a yearly consumption of ten billion packs.