Carton packaging and filling machines supplier SIG Combibloc has announced an investment of more than €36m to expand its first South American packaging plant.
The plant commenced operations in Campo Largo, near Curitiba in Brazil's Paraná state in 2011, and the latest investment will enable the company to step up its pace in Brazil.
The company has started work on the second stage of the plant expansion earlier than it planned.
According to SIG Combibloc, the investment is set to allow the installation of an extrusion line.
The new line will laminate the unprocessed cardboard for the carton packs onsite in Campo Largo with a polymer and aluminium coating.
A liquid barrier for the product is built by the inner polymer layers, while the outer layer will keep moisture at bay.
The razor-thin aluminium layer protects the food packaged in the carton pack from light, oxygen and external odours, and the packaging material is printed, cut to size, and stamped and sealed after the coating has been applied.
The Canadean market research institute estimates that the sales of aseptic carton packs totalled more than 13 billion units in Brazil in 2012, and are forecasted to continue increasing at a rate of 8% annually up to 2015.
SIG Combibloc supplies carton packaging and filling machines for beverages and food.
The company, which is part of the New Zealand-based Rank Group, achieved a turnover of €1,450m in 2011.
Image: SIG will invest €36m in its Brazil plant to install a new extrusion line. Photo: SIG Combibloc