Constantia invests in expansion of rolling capacity

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The world's third-largest flexible packaging manufacturer is investing more than 80 million Euro in its Constantia Teich facility in Austria.

The key elements are a new rolling mill and another lacquering line, allowing the group to capture growth opportunities in the aluminium market whilst securing the supply chain. This also represents a further investment in sustainability by lowering the CO2 footprint, powering the rolling mill with green electricity, and adding solar power generation.

"We continue to pursue our successful growth strategy with new state-of-the-art technology at our Teich factory," says Pim Vervaat, CEO of Constantia Flexibles. With the new rolling capacity, Constantia Teich will produce a total of 90,000 t (+30 %) of aluminium foil in Austria in the future, making the company the largest integrated producer in Europe. By producing the foils at Constantia Teich, the carbon footprint is significantly lower than purchased foils from outside Europe. This will avoid over 100,000 t of CO2 as a result.

Supply chain is secured through in-house production

In addition to the positive impact on the eco-balance, the company can secure the supply chain through in-house production. "We are more independent and therefore more crisis-proof," emphasizes Gerald Hummer, Executive Vice President of the Aluminium Division. The foils will be manufactured using high-end primary materials from Constantia Flexibles’ established European partners. An ever-increasing proportion of material comes from recycled secondary aluminium as the company is paying more attention to achieving a closed loop.

The investment in the foil production facility includes a complete expansion package, which also covers structural and infrastructural measures. Constantia Flexibles' largest plant will be further expanded by investing in a rolling mill, a slitting line, annealing furnaces, and expanding the existing high-bay warehouse. The project will start in the fall of 2022. The start of commercial production is expected in spring 2025. Production will be primarily for high-end packaging in the pet food, food, pharmaceutical, and coffee segments.

In addition, Constantia Flexibles aims to increase capacity in strategic growth areas, such as coffee capsules, and thus invested in another lacquering machine and ancillary equipment. On the roof of some of the buildings, solar panels measuring several thousand square meters will be installed.