27.07.2007

Ball Packaging Europe upgrades production capacities for the growing beverage can market

Beverage can maker increases production volume and number of employees at the plant in Hermsdorf / Saxony-Anhalt and Radomsko / Poland

Hermsdorf, July 27, 2007. Ball Packaging Europe, one of the leading beverage can makers in Europe, is investing approximately 20 million euros to increase its production capacities in Germany and Poland.  The reason for the upgrade is the continued high growth rate in the European beverage can market, in particular in Poland. To satisfy the rising demand for beverage cans, Ball Packaging Europe is extending its production capacity in Hermsdorf, Saxony-Anhalt, and at the Radomsko plant in Poland by a total of approximately half a billion cans per year. The increase in production volume will be achieved by upspeeding the existing can-making lines at the two plants and the additional volume will be available in early 2008. The upgrade measures will create a total of around 20 additional skilled jobs at the twp production sites.  

As recently as April 2007, the production volume at Hermsdorf was significantly increased following the commissioning of a second production line. The reason for the further capacity upgrade in Hermsdorf and for the extension in Poland is the unprecedented growth currently being experienced in the European beverage can market. In 2006 alone, the overall European market grew by 8 percent , reaching a volume of some 45 billion cans (source: BCME). In 2007 growth which is being reported throughout Europe even topped 10 percent.  The development is particularly distinct in eastern Europe, the highest growth rates being reported in Poland: here sales increased by almost 25 percent in 2006 and around 30 percent in 2007. The clear upward trend in Europe is expected to continue in the coming years. Continued recovery with rising sales volumes is also expected for the German market.

“We are upgrading our production capacity to meet the anticipated continued strong demand. At the same time this is an integral part of our customer orientation strategy. We help our customers to participate in the growth of the markets by reacting flexibly to the rising demand and supplying them with premium quality beverage cans,” explains John Hayes, President of Ball Packaging Europe. 

The Hermsdorf beverage can plant started operating in 1992 and at first produced 500 ml steel cans for the German market.  Early in 2004, the production line was converted for aluminium cans in order to be able to supply the growth regions in eastern Europe. Today the plant employs some 150 people who make1.6 billion beverage cans annually on two production lines for both international breweries and also regional breweries in Germany, the Benelux states and eastern Europe, the central location of the plant in the heart of Europe being of significant advantage.  

The Radomsko beverage can plant started operating in 1995. Today the plant employs a workforce of some 160 people who make 1.5 billion beverage cans annually on two production lines (330 ml and 500 ml aluminium cans for carbonated soft drinks and beer). In 2003 Ball Packaging Europe Radomsko was presented with the prestigious Eagle Award by the Polish prime minister, designating it as one of the best companies in the country.

Ball Packaging Europe is one of the leading beverage can producers in Europe with 2,700 employees and twelve production sites in Germany, France, the United Kingdom, the Netherlands, Poland and Serbia.  The company is a subsidiary of Ball Corporation, one of the leading global producers of metal and plastic packaging for the beverage, food and household products industries with corporate headquarters in Colorado, USA.

Forward-Looking Statements
This release contains "forward-looking" statements concerning future events and financial performance. Words such as “expects,” “anticipates,” “estimates” and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties which could cause actual results to differ materially from those expressed or implied. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission, including Exhibit 99.2 in our Form 10-K, which are available at our Web site and at www.sec.gov. Factors that might affect our packaging segments include fluctuation in consumer and customer demand and preferences; availability and cost of raw materials, including recent significant increases in resin, steel, aluminum and energy costs, and the ability to pass such increases on to customers; competitive packaging availability, pricing and substitution; changes in climate and weather; crop yields; industry productive capacity and competitive activity; failure to achieve anticipated productivity improvements or production cost reductions, including those associated with our beverage can end project; the German mandatory deposit or other restrictive packaging laws; changes in major customer or supplier contracts or loss of a major customer or supplier; and changes in foreign exchange rates, tax rates and activities of foreign subsidiaries. Factors that might affect our aerospace segment include: funding, authorization, availability and returns of government and commercial contracts; and delays, extensions and technical uncertainties affecting segment contracts. Factors that might affect the company as a whole include those listed plus: accounting changes; successful or unsuccessful acquisitions, joint ventures or divestitures; integration of recently acquired businesses; regulatory action or laws including tax, environmental and workplace safety; governmental investigations; technological developments and innovations; goodwill impairment; antitrust, patent and other litigation; strikes; labor cost changes; rates of return projected and earned on assets of the company's defined benefit retirement plans; pension changes; reduced cash flow; interest rates affecting our debt; and changes to unaudited results due to statutory audits or other effects.

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