Investment firm Manna Capital Partners and aluminium beverage packaging company Ball Corp. team up to an aluminium rolling mill.
The two partners have announced an alliance in which Manna will construct and operate an aluminium can sheet rolling mill and recycling centre in Los Lunas, New Mexico. Ball will enter into a long-term supply agreement and also intends to take a minority equity position in the mill.
Demand for beverage cans in North America on the rise
Global aluminium can demand is expected to increase significantly by 2030, with North America estimated to account for a sizeable part of the growth. Since 2016, industry demand for beverage cans in North America has grown 24 % from 107bn to 133bn units in 2021. While the industry in NA has relied on imported aluminium can sheet coils to meet demand, alliances like this one will allow Ball and its key customers to access more domestically produced aluminium can sheet and remove impediments to growth.
“We look forward to partnering with Ball, a leader in the beverage packaging industry, to improve supply chain efficiencies through domestic production of more sustainable aluminium,” said Ulysses L. Bridgeman, managing partner of Manna Capital Partners.
Aluminium cans with high recycled content
“Further increasing recycled content in our products is key to boosting our sustainability and securing domestic supply of our key raw material,” said Dan Fisher, president and CEO of Ball Corporation. “This alliance complements the significant manufacturing investments Ball has made across the Southwest US since 2020 to meet growing demand for sustainable beverage packaging.”
Ball and key customers of the new mill will be provided high recycled content aluminium can sheet under long-term supply agreements. Further investment in used beverage can (UBC) recycling infrastructure is anticipated in order to supply the rolling mill with enough scrap material. The mill is expected to be operational in 2026 and ramp additional production over a multi-year period.