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Rexam closes Dmitrov plant

Published:  03 August, 2009

Rexam Beverage Can Europe & Asia will close its Dmitrov plant near Moscow because of a reduction in demand due to the recession.

Rexam's said their overall strategy has been to match its capacity to market requirements and 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 it is claimed 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, said:

"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."

"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."