Sonoco’s composite cans are lighter than metal and cheaper than glass. Because they are not the norm, they attract attention - which is augmented by the facts that the pack design can wrap around 360 degrees and the cans come in a variety of sizes in height and diameter to maximise presence on the retail shelf. Because they have a rigid shape, branding is fully visible on shelf and throughout use. Features like flavour lock lids, vacuum seals and moisture barriers are possible.
Sonoco is investing in the potential of its can with a new state-of-the-art, high-speed composite can production facility near Kuala Lampur, Malaysia to produce packaging for snacks.
The company is also spending more than $5 million to create the Sonoco Innovative Packaging SolutionsStudio at its Hartsville, USA, manufacturing and headquarters complex.
Jack Sanders, president and chief executive officer, told shareholders, "Continued growth for packaged snacks in Southeast Asia requires that we build our third composite can plant in Malaysia. The new facility will be located on our customer's new manufacturing complex and will more than triple our current can production capacity in Malaysia."
Sonoco will add three high-speed composite can lines along with two metal end presses.
In addition, an extrusion laminator is to be installed at the company's flexible packaging facility in Kajang, Selangor Darul Eshan, Malaysia, to produce can liners. The first can line is expected to be installed in the third quarter of 2014 and begin commercial production in the first quarter of 2015. All three lines, along with the metal end presses and the extrusion laminator should be operational by the end of 2015.
"In addition to producing all components for the finished composite cans, we will provide and run sophisticated depalletising equipment at our customer's production facility," Sander said. "This is the first time that we have provided an extended supply chain solution for a composite can customer."
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