A combination of strong competition and the strength of sterling against the euro is forcing Rexam (4 Millbank, GB - London SW1P 3XR) to close two of its consumer packaging plants in the UK. There will be up to 350 job losses. Rexam Beauty & Closures Sector plans to shut its Rexam Webster plant, located in Poole, Dorset, with as many as 250 redundancies. The company says the packaging and containers-for-beauty-care business has not been able to remain competitive, or to protect its market share, because of the strength of sterling, the weakness of the euro and the competitive nature of the market. It expects all products manufactured at the site to be transferred to other facilities in the sector so that service to customers is maintained.

The second proposed closure is the Rexam Flexibles factory in Whitehaven, Cumbria, where sterilisable medical packaging for healthcare and industrial applications is produced. Again, the company blames the competitiveness of the market, plus the diverse routes to market that the business entails. Up to 100 jobs will go, although operations and services will be transferred to other companies within Rexam Flexibles, or to a major UK healthcare distributor.

Rexam is one of the world´s top five consumer packaging groups and the market-leading can-maker. In 1999 it had a turnover of GBP 2.4bn and 25,000 employees.