HARTSVILLE, S.C., Jan. 20 /PRNewswire-FirstCall/ -- Sonoco (NYSE: SON),
the global packaging company, has opened a new manufacturing facility in
Resende, Brazil, to produce steel easy-open closures for use on metal cans,
according to Charles L. Sullivan, Jr., senior vice president, Consumer
Products. Annual capacity of the plant is projected to be more than one
billion closures.
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The Resende plant, which is part of the Company's Sonoco Phoenix business
unit, is strategically located between Sao Paulo and Rio de Janeiro and
accessible to critical supply points and ports. The facility will serve as
Sonoco's center for export to world markets as well as supplying the Brazilian
market, the fourth largest packaging market in the world.
"Sonoco's expansion in Brazil is part of a global growth initiative to
leverage Sonoco Phoenix's superior easy-open closure technology and its
reputation for excellent customer support and technical assistance. The new
plant provides a unique opportunity for Sonoco to meet the needs of companies
in Brazil and around the world that want to convert to Sonoco's easy-open
closures," said Sullivan.
"Sonoco's investment in Brazil allows the Company to increase production
capacity to meet growing consumer demand for easy-open closures throughout the
world. Consumers prefer the convenience these closures add to canned foods
because a can opener is not needed to open the package. Instead, the consumer
uses only fingers to easily remove the closure. Food producers in Europe and
North America have embraced Sonoco Phoenix's easy-open closures as a new way
to differentiate and promote their products and have been experiencing
significant increases in market share and category growth. Sonoco believes the
same will happen in Brazil," said Sullivan.
"Brazil offers many opportunities for growth, since there is no comparable
steel easy-open closure technology available," explains Paul McClure, business
development manager for Sonoco Phoenix. "Brazilian consumers will enjoy this
new packaging feature. Sonoco Phoenix closures are significantly easier to
open than other closures currently produced in Brazil, reducing the risk of
cut fingers. Easy-open closures give consumers a new reason to buy a product-
they like the convenience."
McClure says Brazilian food companies also will benefit from Sonoco
Phoenix's easy-open closure technology. "Sonoco Phoenix's closures withstand
the high temperatures required for processing many foods. Our expertise in
coating and special manufacturing techniques greatly reduces the risk of
corrosion inside and outside of the package. These benefits allow food
processors to improve their filling and sealing processes."
Initially, the plant is operating with three manufacturing lines that
produce 300 diameter easy-open closures suitable for a wide range of canned
processed foods, including meats, seafood, vegetables, tomato products, dairy
products and pet food. Sonoco plans to add additional manufacturing lines in
the near future.
Sonoco Phoenix is the business unit of Sonoco that manufactures steel,
aluminum and peelable membrane easy-open closures for metal, plastic and
composite containers. Customers around the world use Sonoco Phoenix closures
for food and nonfood applications. Sonoco Phoenix was created in 2001 when
Sonoco purchased Phoenix Packaging, which was founded in 1993. Sonoco Phoenix
operates seven manufacturing facilities in the United States and Brazil.
Sonoco, founded in 1899, is a global manufacturer of industrial and
consumer products and provider of packaging services, with approximately 300
operations in 32 countries serving customers in some 85 nations. More
information about the Company is available on its Web site at www.sonoco.com .
FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION
Statements included herein that are not historical in nature are intended
to be, and are hereby identified as, "forward-looking statements" for purposes
of the safe harbor provided by Section 21E of the Securities Exchange Act of
1934, as amended. The words "estimate," "project," "intend," "expect,"
"believe," "anticipate," "objective," "goal," and similar expressions identify
forward-looking statements. Forward-looking statements include, but are not
limited to, statements regarding offsetting high raw material costs, adequacy
of income tax provisions, refinancing of debt, adequacy of cash flows, effects
of acquisitions and dispositions, adequacy of provisions for environmental
liabilities and financial strategies and the results expected from them, and
producing improvements in earnings. Such forward-looking statements are based
on current expectations, estimates and projections about our industry,
management's beliefs and certain assumptions made by management. Such
information includes, without limitation, discussions as to estimates,
expectations, beliefs, plans, strategies and objectives concerning our future
financial and operating performance. These statements are not guarantees of
future performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual results may
differ materially from those expressed or forecasted in such forward-looking
statements. Such risks and uncertainties include, without limitation:
availability and pricing of raw materials; success of new product development
and introduction; ability to maintain or increase productivity levels;
international, national and local economic and market conditions; fluctuations
in obligations and earnings of pension and post-retirement benefit plans;
ability to maintain market share; pricing pressures and demand for products;
continued strength of our paperboard-based engineered carrier and composite
can operations; anticipated results of restructuring activities; resolution of
income tax contingencies; ability to successfully integrate newly acquired
businesses into the Company's operations; currency stability and the rate of
growth in foreign markets; use of financial instruments to hedge foreign
exchange, interest rate and commodity price risk; actions of government
agencies; and loss of consumer confidence and economic disruptions resulting
from terrorist activities.
Information about the Company's use of non-GAAP financial measures, why
management believes presentation of non-GAAP financial measures provides
useful information to investors about the Company's financial condition and
results of operations, and the purposes for which management uses non-GAAP
financial measures is included in the Company's 2002 Annual Report on Form 10-
K filed with the Securities and Exchange Commission. Additional information
concerning some of the factors that could cause materially different results
is included in the Company's reports on forms 10-K, 10-Q and 8-K filed with
the Securities and Exchange Commission. Such reports are available from the
Securities and Exchange Commission's public reference facilities and its Web
site, the Company's investor relations department and the Company's Web
site, www.sonoco.com .
SOURCE Sonoco