ORG to upgrade canmaking plants using equipment from SLAC

ORG Technology's chairman Zhou Yunjie inspects operations at the Xianning plant

ORG Technology, one of the largest canmakers in China, has signed a RMB300 million (US$44m) deal with equipment manufacturer Suzhou SLAC Precision Equipment for the supply and upgrading of six beverage can lines over the next three years.

The work on six D&I canmaking lines at four plants – Beijing, Foshan, Hubei and Qingdao – acquired by ORG from Ball in 2019 in a deal estimated at $225m, will involve the relocation of one plant. It will also include changes to the layout and refurbishment of equipment at others to optimise operations. Details were revealed in an announcement on the Shenzhen stock exchange website.

At the time of the sale, the facilities had a combined manufacturing capacity of about 8.5 billion cans and ends a year. ORG also operates five other beverage can plants in China.

In December 2018, prior to the sale being completed, The Canmaker reported that Ball would be contributing between $50m and $75m towards the costs of the plant relocation. Ball also agreed to license its beverage can technology to ORG in China and announced plans to reinvest in ORG’s shares.

Ball’s chief executive John Hayes said at the time: “This arrangement allows each party to leverage its own geographic strengths, while allowing Ball to continue our disciplined approach to capital allocation by freeing up capital that does not generate our required returns.”

Ball said that it would continue to supply aluminium beverage cans to customers in other parts of Asia from its plant in Myanmar and joint-venture plants in Vietnam, Thailand, South Korea and Taiwan.

ORG Technology Co Ltd is listed on the Shenzhen stock exchange and its major shareholder is Shanghai Yuanlong Investment Company.