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Rexam ramps up plastics packaging

Global packaging supplier Rexam PLC (London) continues to integrate recent plastic acquisitions, including Precise Technology (North Versailles, PA), with the added companies boosting first-half sales from £250 million ($475.2 million) in 2005 to £379 million through June 2006. Acquiring Delta Plastics (Hot Springs, AR) and Precise in late 2005, the global leader in cans picked up Ecanco of Egypt in 2006 for £59 million on the aluminum side, and Airspray International Inc. (Pompano Beach, FL), a maker of plastic nonaerosol foam pumps, and FangXin Ltd. (Shanghai), a Chinese cosmetics packaging firm, for £103 million and £28 million, respectively.

The three plastics acquisition added £119 million to sales and £12 million in operating profit to the first half of 2006. Going forward, Rexam plans to sell nonbarrier thin-wall plastics operations, which include one plant in the U.K and two in Scandinavia. The company reports interest in these businesses and doesn''t anticipate any problems in their sale. Rexam already closed four former Precise plants in the U.S. tied to the medical market.

The company is also tapping a growing Indian market, forming a joint venture in the first half of the year with Hindustan Tin Works to make beverage cans in India. It has also acquired Truepack for £5 million, a plastic pharmaceutical packaging company in Bangalore, India (e-Weekly August 21-25). Rexam has also introduced high-barrier food container production in Europe and built a dispensing systems plant in Tournus, France.

TAGS: Business
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