Brazilian Aluminum

Up to 1996 the industrial units were located in the Southeastern region, mainly in the States of So Paulo, Minas Gerais and Rio De Janeiro. The two last plants to be entered in operation are located north-eastern, northeast Latasa s.a. (Lanesa), in Pernambuco, and the Metalic, of steel cans, in the Cear, having both initiates its operations in as the semester of 1997. To the exception of the Metalic, the too much manufacturers use aluminum as raw material in the manufacture of the drink cans. In 1998, it was evidenced great predominance of the aluminum cans, that represent 94% of offer in 1998, against only 6% of steel cans, manufactured for the Metalic.

The biggest production of aluminum cans of two parts follows the trend of the North American market, where the aluminum presents freehold. In the case of the steel cans, the development of leaf-of-flandres, appropriate material for this use, comes being carried through mainly for European producers and the CSN (today controller of the Metalic). The CSN is siderurgical greater Brazilian e, also, one of world-wide the producing greaters of leaf-of-flandres. In 1995 it decided to create a specific product for the use in drink cans of two parts, a time that the Metalic (its associate) decided to produce cans using as raw material the steel instead of aluminum. The expressive growth reached in the production of cans for drinks if must to the increment of the investments, as well as the entered a of world-wide the producing greaters of aluminum cans as Reynolds, the Crown, Cork & Seal, the American Can and the Ball in the Brazilian market. Thus being, the production capacity reached 10.1 billion cans/year in 1996 ends, passing to 12,2 billion in 1998. Being taken in account the sales of cans in the national market in relation to the production, it is observed that the installed capacity of the manufacturers was less expressive in the years of 1996 and 1997.

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