Rexam (London / UK; www.rexam.com) is continuing its expansion drive in rigid plastic packaging. The company recently announced two significant investments, the purchase of US company Precise Technology (Pittsburgh, Pennsylvania; www.precisetech.com) from private equity group Code Hennessy & Simmons for USD 257.5m (EUR 221m) including debt and a major commitment to barrier packaging technology in the UK. The moves follow its exit from the flexible and thin wall packaging sectors over the past two years and the subsequent purchase of Plastic Omnium´s medical packaging operation and the business of US-based Delta Plastics.

Precise Technology, which employs around 1,700 people, provides a variety of injection-moulded plastic packaging solutions for the healthcare, personal care and food and beverage markets including pharmaceutical and medical components and devices, dispensing closures, containers and other consumer packaging. The company operates 15 plants in the US, including two tool manufacturing facilities, a plant in The Netherlands and soon to be finished Poland. In 2004, it had operating profit of USD 21.7m on sales of USD 294m.

CEO Lars Emilson said the acquisition of the US producer, set to be completed this year, provides an “excellent entry” for Rexam into the growing North American pharmaceutical and healthcare packaging market and will also extend the company´s capability for customers there who have been supplied mainly from Europe up until now.

At its plant in Deeside, Wales, Rexam plans a staged, GBP 2m (EUR 2.9m) investment programme to produce seven- layer, coextruded sheet for subsequent thermoforming into microwaveable food containers. The production line will be operational during the first quarter of 2006. The sheet will be based on PP and have EVOH as its barrier material. It will be converted using rotary thermoforming technology already operated by the company in North America, where it has over 50% of the market for high barrier plastic containers.

The UK investment follows Rexam´s success in developing a single-serve, round bowl for food company Princes (www.princes.co.uk) for rice- and pasta-based meals eaten on-the-go. The bowl produced in North America, has an easy-open, aluminium can end and is decorated with a polystyrene shrink sleeve. After retort, packs have a shelf life of at least 18 months. Business development director for food and beverage plastics, David Lewis, told Plasteurope.com that Rexam sees the microwaveable food market as a “significant growth area.”