BROOMFIELD, Colo., Oct. 11, 2011 /PRNewswire/ --
- Ball has acquired its partners’ interests in a former joint venture plant in Qingdao, China
- The plant is being relocated and expanded in Qingdao
- The new facility is on schedule to begin production by the end of 2011
- Ball’s Qingdao investment is part of the company’s previously announced 2011 capital expenditure program
Ball Corporation (NYSE: BLL) announced today it has acquired its partners' 60 percent interests in a former joint venture metal beverage can plant in Qingdao, China, and is building a new, expanded plant in Qingdao to meet customer demand.
Ball has owned 40 percent of the joint venture plant since 1993. The equipment from the existing facility will be relocated to another Ball location in China. Construction on the new Qingdao plant is underway.
"Our volumes in China in the first half of 2011 experienced strong growth compared to the same period last year due to increased market demand and the acquisition of our Foshan joint venture beverage can plant in June 2010," said Raymond J. Seabrook, executive vice president and chief operating officer, global packaging. "The relocation of the existing Qingdao plant offers an opportunity for us to build a larger, high-speed plant to supply our customers' growing demand for beverage cans in northeastern China."
Ball expects to report an after tax gain of approximately $6 million in the third quarter of 2011 on its previous ownership interest in the joint venture, subject to the appraisal of the business. The new plant will supply both 330ml and 500ml cans – an increasingly popular size for beer. It is on schedule to start up by the end of 2011.
Ball Corporation is a supplier of high quality packaging for beverage, food and household products customers, and of aerospace and other technologies and services, primarily for the U.S. government. Ball Corporation and its subsidiaries employ more than 14,500 people worldwide and reported 2010 sales of more than $7.6 billion. For the latest Ball news and for other company information, please visit http://www.ball.com.
This release contains "forward-looking" statements concerning future events and financial performance. Words such as "expects," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99.2 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect our packaging segments include fluctuation in product demand and preferences; availability and cost of raw materials; competitive packaging availability, pricing and substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve anticipated productivity improvements or production cost reductions; mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange rates or tax rates. Factors that might affect our aerospace segment include: funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts. Factors that might affect the company as a whole include those listed plus: accounting changes; changes in senior management; the recent global recession and its effects on liquidity, credit risk, asset values and the economy; successful or unsuccessful acquisitions; regulatory action or laws including tax, environmental, health and workplace safety, including U.S. FDA and other actions affecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process; governmental investigations; technological developments and innovations; goodwill impairment; antitrust, patent and other litigation; strikes; labor cost changes; rates of return projected and earned on assets of the company's defined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget and debt limit; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or other effects.
SOURCE Ball Corporation