Ball to grow European can capacity with Polish plant

Ball chief executive David Hoover said today (24 January) that the firm had a "strong" 2007 in Europe and Asia, with "improved" results and "numerous growth opportunities".

He praised John Hayes, who was promoted this week to executive vice president and chief operating officer of Ball Corporation, for having done a "superior job" of leading the European operations in recent years.

Sales of drinks cans in the group's Europe/Asia segment rose by 26% to £966m ($1.9bn) for the year ending 31 December 2007. Pre-tax profits increased by 32% to £130m, not counting an insurance gain of £38m in 2006 after a fire at the Hassloch beverage can plant in Germany.

Continued strong demand for special-size cans for energy drinks and beer contributed to a sales increase of 6% to £1.4bn at Ball's metal can business in the US.

However, the division's profit fell 21% to £108m following a £43m payment to Miller Brewing Company to settle a legal dispute. Ball has retained Miller's beverage can and can end business to 2015.

Hoover said work was progressing on schedule to install a new line at Monticello, Indiana, to produce 700ml (24oz) cans.

Ball will also build a one-line metal beverage container plant in Brazil through its Latapack-Ball Embalagens joint venture.

The plant will initially have a capacity of 900 million cans a year when it starts production in 2009. This will be expanded to 2 billion cans a year, depending on demand.

Hoover said he was "optimistic" about 2008 and Ball would focus on improving results in food and household products and plastic packaging to "more acceptable" levels.

"We have attractive opportunities for growth in our beverage can operations worldwide."

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