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Crown Holdings (CCK) Opens Beverage Can Facility in U.S.

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Crown Holdings, Inc. (CCK - Free Report) , a leading supplier of packaging products, opened a new beverage can manufacturing plant in Nichols, NY, on May 9. The inauguration of this facility reflects Crown Holdings' commitment to deliver innovative metal packaging for modern consumers.

Based in the Tioga County Industrial Park in the Town of Nichols, the facility which produces two-piece aluminum cans in a variety of sizes, is anticipated to create more than 160 new jobs by 2018. This will also support the country's growing demand for specialty beverage cans.

Construction on the 533,853 square foot building began in Dec 2015 and commercial shipments began in late Jan 2017. The plant's second manufacturing line was completed in Apr 2017. Crown currently operates 15 beverage can plants in North America, manufacturing aluminum cans ranging in size from 7.5 ounce–16 ounce.

Crown Holdings is anticipated to gain from the rise in global beverage can demand. To meet the growing beverage can demand, the company intends to build new facilities and is well poised to gain from the geographic expansion of its beverage can lines. In 2016, it completed the construction of two beverage can plants, one in Monterrey, Mexico and one in Nichols, NY. Crown Holdings also added a second beverage can line to the Osmaniye, Turkey plant.

Further, the company completed the construction of a food can plant in Thailand to serve the coconut industry. It completed the conversion of its beverage can plant in Custines, France, from steel to aluminum, with the start-up of the second high speed line in April. In addition, the company remains on track to expand its beverage can capacity in Columbia in June.

The new beverage can plant in Jakarta, Indonesia, is scheduled to begin commercial production by the end of second-quarter 2017. The second line at the Danang, Vietnam plant will start operating in the third quarter this year.  A new beverage can plant in Yangon, Myanmar, and a glass bottle facility in Chihuahua, Mexico, are scheduled to commence operations in first-half 2018.

Over the last one year, Crown Holdings underperformed the Zacks classified Containers- Metal/ Glass sub-industry with respect to price performance. The stock gained around 3.9%, while the industry recorded growth of 14.5% over the same time frame.



Zacks Rank & Other Key Picks

Crown Holdings currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the same space include Altra Industrial Motion Corp. , Parker-Hannifin Corp. (PH - Free Report) and Graco Inc. (GGG - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Altra Industrial Motion generated a positive average earnings surprise of 15.93% over the trailing four quarters. Parker-Hannifin has delivered an average positive earnings surprise of 14.94% in the last four quarters. Graco has an average positive earnings surprise of 13.88% for the past four quarters.

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