Rexam's Berlin Plant to Convert from Steel to Aluminum Packaging

Rexam, the global consumer packaging group and the world's leading beverage can maker, today announced plans to convert its beverage can plant in Berlin from steel to aluminium. The favourable economics of the aluminium can in a deposit system combined with its strong environmental track record are key drivers behind the move.

The conversion is a direct response to Germany's planned introduction of a nationwide return system for one-way containers in May 2006. Aluminium cans are 100% recyclable and can be brought to the recycling process again and again without deterioration.
Rexam believes the high scrap value of aluminium will make the beverage can the most viable packaging solution within the new return system. With a scrap value that is at least one eurocent higher than any other packaging material, a used aluminium beverage can is the only pack that will generate a good scrap income under the deposit. In addition, beverage cans provide lower handling costs throughout the supply chain. Returned cans are also the most efficient to handle as they can be easily compacted.

The conversion of the Berlin plant will start in January 2006 and will be completed by the end of the second quarter. Following the conversion, production at the plant will increase from two to three lines creating an estimated 40 new jobs. The approximate cost of the project is 24m Euros.