Showa completes its third beverage can plant in Vietnam

Japanese canmaker Showa Aluminum Can (SAC) has opened its third beverage can plant in Vietnam to tap into growing demand for canned drinks in south east Asia.

A ceremony was held with staff and management this week in the plant at Ba Ria-Vung Tau following the completion of its construction, which started early last year.

The facility was built through Showa’s joint-venture partner Hanacans and has capacity to make 1.3 billion aluminium cans a year, the Tokyo-based company said.

Completion of this latest plant in a suburb of Ho Chi Minh City in southern Vietnam, and the installation of a 1.1bn units a year end line at Bac Ninh in a suburb of Hanoi, means that Hanacans will have facilities in the north, central and southern regions of the country and total capacity to produce 3.3bn cans and ends a year.

The Showa Denko subsidiary has been expanding overseas as its business has levelled off in Japan, where sales of cans were flat in the past two years, according to Showa Denko Group results published in February 2020. Sales of cans for 2019 matched those of a year earlier, while sales of foil and speciality aluminium components fell.

“In 2019, we streamlined our capacity to produce aluminium cans in Japan, where the market for cans has matured,” the company said.

The third Hanacans plant is the 13th to be operating in Vietnam: four are run by Crown, two by Toyo Seikan affiliate API, one by brewer Sabeco, one by TBC-Ball, one by Baosteel Vietnam and one by an independent canmaker.