More beverage can capacity for Malaysia

China’s Shanghai Baosteel Packaging is planning to construct a beverage can plant in Malaysia as it seeks to expand the market in South East Asia.

It will be Baosteel’s second project outside China, the other being an established plant at Saigon in Vietnam.

The news of the RMB461 million (US$66m) project by Baosteel Packaging, is revealed in a statement to the Shanghai Stock Exchange following a decision made at a board meeting on 22 May.

The first phase of the project at Selangor will have capacity for 800 million D&I aluminium cans per year, indicating that the plant will be expanded at some future date. The new venture will be known as Malaysia Baosteel Can Manufacturing Co Ltd, and is being funded through Baosteel Packaging’s subsidiary Perfect Packaging Industry Co Ltd (also known as Hong Kong Company).

In February this year, The Canmaker reported that Baosteel Packaging Co, one of China’s largest beverage can manufacturers, was planning to build its eighth canmaking plant at Lanzhou, the capital of north west Gansu province of the country.

The plans for the Lanzhou Baosteel Can Manufacturing plant included the construction of an ‘intelligent’ D&I production line and support facilities that will enable it to exploit demand for beverage cans in the western region of China. The line will have a capacity of one billion cans a year in the first phase of the project, which will cost about RMB402.67m (US$57.33m).

Last June, The Canmaker also reported that Baosteel Packaging was planning to expand the capacity of its plant at Harbin, the capital of Heilongjian in northern China. A second canmaking line was being installed to meet growing demand from drinks companies in the region.

Baosteel Packaging’s proposed plant in Malaysia will be the country’s fourth, the others being operated by a Crown subsidary and two by Kian Joo, the domestic packaging firm. Total beverage can capacity will be more than five billion units a year when the new plant starts up, probably at the end of 2021.