3rd Aug 2009 07:00
Rexam to reduce beverage can capacity in Russia
3 August 2009
Whilst this will reduce annual active capacity in Russia by some 1.3 billion cans, there will be no impact on Rexam's ability to meet customer requirements.
The closure of Dmitrov, which was acquired as part of Rostar in January 2008, will result in annualised savings of approximately £6m in 2010 for an exceptional restructuring charge of £16m in total in 2009 of which some £8m will be cash costs. It forms part of the capacity reduction programme in our European beverage can operation which, in total, is expected to save some £20m in 2010. The end line will be relocated within Russia whilst the can line will be eventually redeployed as market conditions improve.
Commenting, Leslie Van de Walle, Rexam's CEO said: "Despite poor volumes in Russia, the Rostar acquisition is delivering good returns on our investment, and long term growth prospects remain very attractive."
Enquiries
Rexam
Leslie Van de Walle, Chief Executive Officer +44 20 7227 4100
David Robbie, Finance Director
Sandra Moura, Head of Investor Relations
Financial Dynamics
Andrew Lorenz +44 20 7269 7291
Susanne Yule
Notes to Editors
Rexam is the No 2 global consumer packaging company. It is the leading global beverage can maker, and a major global player in rigid plastic packaging. Our vision is to be the leading global consumer packaging company. We are business partners to some of the world's most famous and successful consumer brands as well as young, entrepreneurial start-ups. We offer a broad range of packaging services and solutions for different industries, using different materials and technologies. Three things characterise us - leadership in our industry, our commitment to innovation and our passion to deliver exceptional value. Rexam's sales from ongoing operations are in the region of £4.6 billion. We employ some 24,100 people in more than 20 countries and are a member of the FTSE 100. Rexam's ordinary shares are listed with the UK Listing Authority and trade on the London Stock Exchange under the symbol REX. For further information, visit Rexam's website at www.rexam.com
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