SIG Combibloc (Linnich / Germany; www.combibloc.com) is to invest EUR 90m in a packaging manufacturing plant in Campo Largo, Paraná / Brazil, its first production facility in South America. Construction of the facility is under way and production of carton packs is scheduled to begin at the end of the first phase of building in 2011, with an initial capacity of 1 bn packs annually. Capacity can be doubled over a short period of time, the company said. Phase one involves the construction of 12,000m² of the total 13,000m² available and the new plant will employ 225 people.

Rolf Stangl, CEO of SIG Combibloc, said that Brazil’s GDP is expected to grow by 5.5% in 2010 and that the country “offers an outstanding environment from an overall economic perspective. In international terms, it is one of the biggest economic growth markets. Its need for long-life packed food is growing. After China, Brazil has the highest consumption of products in aseptic carton packs: about 10 bn units per year.”

The company said market analyses indicate that South America will record the greatest growth in demand for milk products, again following China. With aseptic carton packaging playing an important role, demand by 2012 is estimated at 1.5 bn l of long-life milk in aseptic carton packs, accounting for around 30% of overall worldwide growth.

SIG Combibloc said it expects further positive development in alcohol-free and non-carbonated drinks, particularly juices, nectars and fruit- and soy-based drinks. An additional 500m l of long-life product packed in aseptic cartons is forecast for South America by 2012, representing a 40% share of expected growth worldwide.

The new plant will initially produce combibloc standard and midi and combifit midi package formats. Additional designs may join the range progressively as the construction is completed, the company said.