Rexam and Hindustan Tin Works Ltd, an Indian beverage can manufacturer, have announced that they are to invest Rs220cr (US$49m) in converting a steel line to aluminium near Mumbai. The new line, which is expected to come on stream in Q4 2012, will initially produce 33cl and 50cl cans and then slim cans, and will increase total capacity from 300 cpy to 850 cpy.
CRU View: Reusable glass bottles, PET and cartons are the dominant form of packaging in India but the metal can, particularly steel, has been gaining market share. However, recent investments have been in aluminium, indicating that aluminium will gain market share from tinplate and boost demand for aluminium can stock.
Source: CRU Aluminium team