News

Ball Corporation is looking at increasing its can manufacturing capacity in Europe following "outstanding" third-quarter results.

The US-based metal and plastic packaging supplier said sales of drinks cans in Europe and Asia increased by 23% to £255m ($522.4m) for the three months to 30 September. Pre-tax profits rose by 28% to £39m.

Ball chief executive David Hoover said the results in Europe were helped by higher selling prices, continued cost efficiencies and by a full quarter's contribution from new lines added at Hassloch and Hermsdorf in Germany to replace capacity lost in a fire last year.

"We have announced plans for line speed-ups and are looking at possible additional can and can-end manufacturing capacity in Europe to meet the continued demand growth there," he said.

However, Hoover said results at the firm's metal food and household products packaging division in the Americas remained "below acceptable levels".

As a result, Ball will close two aerosol container plants in the US, which employ around 400 people, and pull out of the custom and decorative tinplate can business.

When completed in 2009, the closures are expected to yield cost savings of more than £7m.

Sales increased in the plastic packaging division in the Americas, but sales of commodity PET bottles were "disappointing".

Hoover said the firm would take "aggressive steps" to better position itself for the future.