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Rexam expanding can capacity

During the course of 2006 and 2007 Rexam, the global consumer packaging
company and the world’s leading beverage can maker, has announced several
major capacity expansion projects to meet strong growth in the beverage can
market in Europe.
Availability of cans is critically important to the success of our customers’ business.
Rexam is investing substantial resources in capacity expansion across Europe to
ensure that it can manage the anticipated increase in 2008 and beyond and provide
the high levels of service to customers.
Although the focus is on regions with the strongest growth - Central Europe, Russia,
Spain and the Nordic countries – these investments will help Rexam manage more
effectively its supply of cans to the whole of Europe.
A new aluminium can plant in Ludesch, Voralberg, Austria has already started
production this autumn. The plant will have a full capacity of 2 bn cans annually.
An additional steel line in La Selva, Spain is due to start in May 2008 and will add 600m
capacity to this fast growing area.
In Russia, Rexam is currently building a greenfield aluminium can plant in Argayash,
Chelyabinsk, 2,000 km east of Moscow, to serve customers who are rapidly
expanding into the eastern regions of Russia. The plant will start up in the second
quarter of 2008 and have a capacity of 1.2 bn cans.
In October 2007, Rexam announced that it is to build another greenfield aluminium
can plant in Fredericia, Jutland, Denmark. The new facility will come on stream during
the first half of 2009. The two line plant will have a capacity of 1.2 bn cans.
In total, these investments will increase Rexam’s capacity by more than 5 bn cans
over the next two years.
Tomas Sjölin, Sector Director, Rexam Beverage Can Europe & Asia, commented:
“Last year the European beverage can market grew more than 10%, further
demonstrating customers’ and consumers’ growing preference for this single-serve
package. Growth is continuing and putting even more pressure on the supply
capabilities of the European beverage can industry as a whole. As the market leader,
Rexam has invested in its largest expansion programme ever so that we can capture
growth and continue to be responsive and flexible to our customers’ requirements.”