Rexam increases capacity of speciality sizes in North America

Can making giant Rexam has revealed that its operating profit in Beverage Can North America in 2011 is expected to remain comparable to that in 2010.

In its November 2010 Interim Management Statement, Rexam stated that its Beverage Can North America customer contract negotiations were progressing well.

Ahead of announcing its preliminary 2010 results, which will be revealed on 23 February 2011, the company has stated that is has now completed these negotiations.

Improved pricing, new customers, continued growth in speciality cans and further cost control initiatives that will offset the impact of lower net 12oz volumes have all had an impact on the company’s operating profit.

Speaking to CanTech International, Rich Grimley (pictured), chief operating officer, Rexam Beverage Can Americas, revealed that the company would be increasing capacity of its 24oz package.

He said: “We are the largest producer of 24oz cans in the region and numerous brands are using this size to differentiate their brands and achieve a favourable price point at retail.
“We are especially enthused with growth in speciality sizes, particularly our 24oz package. In fact, we will be increasing capacity of this size about 13 per cent through 2012 to meet the needs of our customers.”

As a result of customer contract negotiations, Rexam has diversified the customer base for all can sizes and has signed medium term contracts to recover most of the 2011 volume loss by 2013.

Rexam also stated in its interim management statement that its Beverage Can South America business continued to grow strongly, and that Rexam would continue to invest to meet the strong demand for beverage cans in this region. Since then, Rexam has signed a long-term contract with its largest customer in Brazil, which underpins future returns on Rexam’s current capital investment plans.

For the full interview with Rich Grimley see the January/February issue of CanTech International.

Related content

Leave a reply

CanTech International