In the background of excess beverage cans supply in China. American soda can maker Ball Corporation is reportedly planning to sell its manufacturing facilities in China at about US$225 million. The news came when the company announced about its plans.
The company plans to sell the can-making facilities to Chinese metal packaging company ORG Technology Co Ltd.
Ball Corporation makes aluminium cans for Coca-Cola Co, Anheuser Busch Inbev NV, and Molson Coors Brewing Co.
Company spokeswoman Renee Robinson told Reuters, "Excess industry capacity in China has led to unsustainable business conditions and inadequate returns on capital deployed relative to Ball's expectations."
He added, “The sale was unrelated to tariffs on aluminium or trade tensions between the United States and China.”
On completion of the transaction, Ball’s contracts in China will transfer to ORG Technology.
Ball’s cans that are manufactured in China are not exported to other countries.
The company said proceeds from the sale of assets and plants in Beijing, Foshan, Hubei, and Qingdao will support its global expansion and multi-year share repurchase programme.
Goldman Sachs & Co served as Ball's financial adviser.
Responses
