Rexam to reduce the footprint of its Chinese make-up operations
Plans to further reduce the footprint of Rexam's plastic make-up packaging operations in China were revealed at the company's plastic packaging seminar this week.
Group director of plastic packaging at Rexam Graham Chipchase said that the company intends to reduce its Chinese make up operations to "three or four" by 2009.
In 2006 Rexam's make-up division "made no money" according to Chipchase and a subsequent 1000 jobs were cut from the division.
Further plants from the makeup division were closed in China in 2007.
"The real turnaround has largely happened here," said Chipchase. "It's certainly one of the best [makeup packaging manufacturers] in the industry, but it below our average."
Rexam holds 10% of the markets it serves, which is a $19bn market.
In June 2007 the company acquired Owens-Illinois' plastics business for $1.86bn (£930m) in a bid to position itself as the leading manufacturer of rigid plastic packaging for the US healthcare industry.
Chipchase revealed that there are no plans for further acquisitions at present as the company enters its second phase of integration of the O-I business.
He said: "We need to show that the business model works and we can deliver that organic growth."
Chipchase: 'one of the best in the industry'
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