Packaging

Rexam successfully completes Beverage Can contract negotiations

Monday 31. January 2011 - In its November 2010 Interim Management Statement (IMS), Rexam PLC, the global consumer packaging company, stated that its Beverage Can North America customer contract negotiations were progressing well.

Rexam has completed these negotiations and can confirm overall operating profit in Beverage Can North America in 2011 is expected to remain comparable to that in 2010 as improved pricing, new customers, continued growth in specialty cans and further cost control initiatives will offset the impact of lower net 12oz volumes. As a result of the 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 IMS 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.
Rexam will announce its preliminary results for the year ended 31 December 2010 on 23 February 2011.