Rexam moves to optimise its operations by ceasing production at Dmitrov plant

Volumes in the Russian beverage can market have reduced significantly owing to the effects of the global economic recession. As Rexam’s strategy has always been, and continues to be, to match its capacity to market requirements, ceasing production at the plant was seen as the logical decision.

Customer requirements for cans and ends will continue to be met by Rexam’s other Russian plants where there is sufficient capacity to meet any foreseeable volume levels. Dmitrov’s can lines will be mothballed while its end making equipment will be installed at Naro Fominsk.

Tomas Sjölin, Sector Director of Rexam Beverage Can Europe & Asia, commented: “We continuously evaluate our capacity position. This is particularly true in times of significant market slow-down such as Russia is experiencing at present. We have considered all options to optimise our network and have decided that ceasing production at the Dmitrov plant is the best course of action.”

He continued: “The Dmitrov employees have done an outstanding job at the plant. This is just a matter of balancing capacity and demand. Rexam is doing everything it can to support its employees in the transition period.”