Ardagh Group has announced plans to invest over $250m to construct two new drawn-wall-ironed (DWI) can making facilities, as part of a supply agreement signed with ConAgra Foods.
The company has entered into an agreement with the packaged foods company to supply substantially all of its US food can requirements.
The facilities will be to used convert the majority of ConAgra Foods’ shelf-sized cans from traditional three-piece can technology to Ardagh’s flexible DWI technology.
According to Ardagh, the facilities will also manufacture the company’s pressurized thin-wall DWI food cans that were recently launched in Europe.
Ardagh Group Metal Americas CEO James Willich said ConAgra Foods chose to partner with the company in a bid to leverage its metal packaging solutions.
"Our approach to DWI will allow ConAgra Foods to convert many lower-volume, specialty shelf sizes to this process, something that has not been feasible with the traditional DWI installations," Willich said.
Commercial supply of the cans is expected to begin from 1 January 2015.