PABC increases can production capacity in a country with little recycling culture

Pakistan Aluminum Beverages Cans (PABC), the country’s only aluminium can maker, has become the country’s second largest company by raising Rs4.6 billion through an initial public offering at a price of Rs49 per share, 40 per cent above the minimum price of Rs35 per share.

The company is expanding can production capacity from 700 to 950 million cans per year. According to Business Recorder, demand expectations are driven by continued growth in soft drink consumption in Pakistan. But, what is not good news is the low penetration of aluminum cans in this market, which is 3.6% (the world average is 19%).

There are many variables that can ultimately positively influence the Pakistani market, such as the sustainable commitments that large global bottlers like Pepsi Cola and Coca Cola have made to greater use of aluminium, which is an infinitely recyclable material. But it is also true that there is no culture of recycling in Pakistan and cans and other materials usually end up in landfills instead of being recycled.

PABC is expected to have a clearer perspective on can recycling, especially if we are talking about a substantial increase in cans from a publicly traded company.