US metal packaging firm Ball is set to end operations at its beverage packaging production facility in Cuiabá, Brazil.
The company offers sustainable packaging solutions for beverage, food and household products customers and has a global workforce of 18,300. Ball’s net sales for last year stood at around $11bn.
Despite the closure of the plant, Ball will continue to serve customers through its other facilities in Brazil. Set up in 1998, the Cuiabá plant employs around 70 people
Ball Beverage Packaging South America president Carlos Pires said: “Absorbing this one line can plant into Ball’s remaining network of 13 plants in South America allows us to reduce our cost structure while continuing to effectively and efficiently supply our customers with the most sustainable package in the beverage supply chain.”
The company will accommodate some of the affected employees in its other locations and offer benefits and outplacement services.
In February this year, the company revealed its plans to build a one-line beverage can and end manufacturing plant in Asunción, Paraguay.
Additionally, Ball stated that it will invest in its Buenos Aires facility in Argentina to enhance the capacity.
The moves are aimed at tapping the growing beverage can market in Paraguay, Bolivia and Argentina, as well as cater to customer demands with multiple can sizes.
The company plans to ramp up line expansions in Argentina in view of the growing demand for environmentally friendly aluminium beverage packaging.
Last month, the company reached an agreement to sell its US steel food and steel aerosol packaging manufacturing assets, and form a joint venture with Platinum Equity.