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Amcor has entered into an agreement to purchase the PET injection and blow molding assets of Embotelladoras Arca (Arca) and supply PET bottles to Arca with an initial supply agreement of eight years. Arca is the second largest Coca Cola bottling franchise in Mexico and was formed in 2001 through the merger of three of the oldest bottling companies in Mexico. It distributes product throughout the Northern region of Mexico.Amcor will purchase the PET on site injection and blow molding assets of Arca for around US$60 million. This amount will be paid in yearly installments throughout the life of the contract.
Amcor currently supplies around 250 million preforms to Arca annually. As a result of this agreement, Amcor will supply 100 per cent of Arca’s requirements, which will represent in excess of 800 million units.
Amcor’s managing director, Russell Jones said: "This acquisition is a further step forward for our business in this region. Over the past few years the business in Mexico has delivered substantial growth in volume and earnings driven by strong customer relationships and the conversion from glass to PET of a number of hot fill beverages.
