Rexam eyes new opportunities in South East Asia
Can maker Rexam is exploring new opportunities in South East Asia. In its 2011 Annual Report the company said: “We do not directly own any can making facilities in South East Asia but we are exploring opportunities in the region continually.”
It added: “Asia has attractive beverage can growth rates. Beverage can suppliers are already investing to meet that increased demand. The increased internationalisation of our global customers is an advantage and we are pursuing opportunities arising from existing relationships and are in regular talks about their expansion plans into these regions.”
Rexam, however, won’t be entering the Chinese market describing it as “highly fragmented”. The firm says it will continue to monitor the market to ensure that it is in a position to act on any favourable opportunities should they arise.
The company continues to invest in the South and Central American markets.
However, it has deferred opening of its Belém beverage can plant in Brazil until the second half of 2012. According to the report, Rexam wants to ensure that it matches capacity with market demand.
Rexam has one plant in Mexico where it makes both standard and speciality cans.
Demand for speciality cans is growing strongly and Mexico has a high per capita consumption of drinks sold in cans.
The report added: “Around half of the can making market is vertically integrated with the beverage producers and we believe that there is potential for consolidation over time.”