Ball Corp expects to add a capacity to produce around eight billion aluminum beverage cans by the end of 2021.
The company is looking to improve operational performance and execute beverage and aerospace projects this year to help achieve its goal, John A. Hayes, Ball’s chairman, president and chief executive officer, said while announcing the company’s 2019 earnings.
In 2019, the company increased the volume of its global beverages business by 5pc and got new contracts for its aerospace business to grow by 14pc to $2.5bn.
The company reported, the 4pc growth in its North and Central America beverage cans business was offset by unfavorable aluminum scrap rates through most of the year. Ball’s volumes were also impacted in the second half of 2019 by tight supply conditions—which the company expects will persist until its new cans production facility in Georgia begins operations and its Texas facility ramps up production in H2 2020.
The company’s beverage cans business grew 8pc in South America during the year. However, its acquisition of Rexam in 2019, costs associated with additional capacity, and an unfavorable exchange rate in Argentina, hampered growth.
Ball’s European beverage packaging business grew 5pc in demand for aluminum cans in the region, driven by a shift towards aluminum cans for non-traditional beverages and energy drinks in Europe.
The company reported consolidated sales of $11.5bn in 2019, down slightly from 11.6bn reported in 2018. Of the total sales, the company achieved $2.7bn in Q4 2019 compared with $2.8bn during the same quarter a year earlier.
However, Ball’s consolidated net earnings increased to $566mn from $454mn in 2018. During Q4 2019, the company reported net earnings of $160mm compared with $151mn in Q4 2018.