Alcoa invests $40 million to expand Brazil Rolling Mill eyeing on specialty packaging in Latin America

Alcoa announced a $40 million investment (100 million BRL) in its Itapissuma, Brazil, rolling mill to increase production of specialty foils for aseptic and flexible packages. Demand for specialty packaging in Brazil is expected to rise seven percent annually over the next three years due to population growth and consumer preference1. The expansion was announced today at the ExpoAlumínio trade show in São Paulo. All additional capacity has been fully committed.

“Alcoa enjoys a leading market position in specialty foil in Latin America where our value-add aluminum is essential for producing highly differentiated packaging,” said Aquilino Paolucci, President of Alcoa Latin American and the Caribbean. “A growing number of consumers prefer this type of packaging because it keeps products fresher, longer and our expansion will enable Alcoa and our customers to capture that rising demand.”

Aseptic and flexible packaging made with specialty foil is the most highly differentiated type of container in packaging. Leading food and beverage companies around the world use aseptic packaging, which allows liquid food products to retain more nutrients and taste, and remain ready for consumption for up to 12 months, even if unrefrigerated. The packages - more than 175 billion of which were delivered globally in 2013 - are typically a mix of materials such as cardboard type paper, plastics and thin aluminum.

The Itapissuma packaging facility is located in the state of Pernambuco, Brazil, which is in the Recife region, and employs approximately 700 people. The expansion is expected to add approximately 50 jobs at the plant following ramp-up of production. Initial work for the expansion is underway and commissioning is expected to begin in 2016. This investment is part of Alcoa’s ongoing portfolio transformation to build out its value-added mid- and downstream businesses to capture profitable growth. Alcoa’s other value-add businesses in Brazil meet demand for oil and gas products, building and construction systems, fasteners, aluminum truck wheels, and forgings and extrusions.

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