Tin cans for new perspective - Ball Packaging puts new line in operation at Zemun-based factory to double production capacities

Fifty new workers at Ball Packaging started production of tin cans on a new line that was ceremoniously put in operation at the Zemun-based factory of this company on Friday (September 16, 2011). Introduction of this EUR 35 million worth of new line will double the production of tin cans, and all products from the new line are intended for export.

David Banjaji, director of Ball Packaging in Serbia, told eKapija that the new investment was of strategic importance for the company and that it was the crown of everything Ball Packaging had done in our country to date.

- The products from this factory are sent to the entire region of southeast Europe, which we believe is the region of the future and growth. We are sure that this reinvestment will be as successful as the initial one. Our target market is entire southeast Europe, from Greece in the south to Austria in the north, and our aim is to further expand operations to enter new markets and to take advantage of Serbia's favorable trade agreements with other countries.

Installation of the new tin can production line at the factory in Zemun started in December 2010. It took the first half of 2011 to install a sophisticated equipment, finish all technical preparations and train workers, whereas the trial production commenced in April.

From the beginning of the year to date, Ball Packaging has produced between 650 and 700 million tin cans, which is about 10% less than in the same period last year when only one production line was in operation.

- Last year's production was a record one. We produced a total of 770 million tin cans in 2010. The plan for this year is 1 billion tin cans. The previous capacity, with only one line employed, amounted to 750-800 million. Now, with the new production line, the capacity will be doubled to about 1.6 billion tin cans per year – Mr Banjaji said for our web portal.

Minister of Environment, Spatial Planning and Mining Oliver Dulic got the honor to open the new production line. He pointed out on that occasion that such investments contributed to a positive image of Serbia and created a favorable climate for foreign investment.

As Minister of Economy and Regional Development Nebojsa Ciric stressed, the fact that the investment in the production line is made at the time of an economic crisis, when many companies cut the number of employees and close their foreign affiliates, makes that project even more significant.

- What is especially important for Serbia is that all tin cans produced on the new line will be intended for export, which should ensure the reduction of the country's trade deficit.

The new production line was put in operation in the presence of over 250 guests. In addition to the representatives of the Serbian government, this event was also attended by Gerrit Heske, director of Ball Packaging Europe, and John Hayes, director general of Ball Corporation.

Hayes said at the opening ceremony that the factory in Serbia had proved that the money invested in it so far had been spent in the best possible way.

(a detail from the opening ceremony at Ball Packaging's factory in Zemun)

- We expect the investment like this one to become a model for our operations worldwide in the future.

Ball Packaging plans to open another tin can production plant in Europe in the future, and as David Banjaji announced for eKapija, that plant will probably be situated in Belgrade.

- We have two metal beverage ends production lines in Europe, one in Germany and the other in Great Britain. Our current capacities are fully employed so that we don't have any plans for their expansion at the moment, bu we definitely plan to open the third production line in the future, and one of the most probable locations for such line is Belgrade. It all depends on the market and market trends.

The company also plans to open a factory in Russia where Ball Packaging Europe is not yet present, but the products for this country are being made in Belgrade.

Ball Packaging Europe is part of the U.S. company Ball Corporation. It entered the market of Serbia in 2004 as the largest greenfield investment in the country. A total of EUR 65 million were invested in the construction of the factory at the time, and jobs were provided for 150 people.