Ball Completes Acquisition of Partners' Interests in Qingdao, China, Beverage Can Plant

"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."

Oct 18 2011 --- Ball Corporation announced 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.