The world market leader in PET packagings, Schmalbach- Lubeca AG (D-40880 Ratingen), is launching a comprehensive restructuring program in its PET Containers Division Europe / Asia, involving an investment of around EUR 100m over the next two years. The aim is to improve both quality and service and to meet current cost expectations of the end customer. “We are replacing our existing machinery with higher output, state-of-the-art injection machines to enable us to continue to supply our customers at competitive prices and at the same time meet the challenges of the commodity sector. This will allow us to extend our leading position in the high-growth PET containers market”, explained George Moore, President of the Division.

Over 40 of the company´s existing injection moulding machines will be replaced with new high-performance units to generate cost advantages in preform production. The introduction of the majority of the new machines is expected to be completed by the beginning of summer 2000. The company´s PET Division is also investing in additional machines in order to produce cost-efficient, innovative and inventive PET packaging and enhanced preform designs. With this approach, Schmalbach-Lubeca intends both to open up new markets for its products and to improve its competitive position within existing sectors, says a recent press release. A similar modernisation programme is planned for the company´s blow moulding business.

More news: as has been reported on several occasions, one aspect of the mega-merger between Viag and Veba is that the Viag subsidiary, Schmalbach-Lubeca, is to become an independent company or be sold off. It has now been reported from London that Rexam plc has joined the list of international bidders for Schmalbach which includes Crown Cork & Seal Co., American National Can Co. and Amcor Ltd.