Jobs fears as Rexan sells glass business

Uncertainty was hanging over 700 jobs last night after consumer packaging giant Rexam said it was quitting the UK glass market.

London-based Rexam, which also makes more than 40 billion drinks cans a year, said it was selling its Barnsley-based glass business to Dublin-based Ardagh Glass for £50m.Ardagh said it could not rule out job losses at Barnsley, which employs 700 staff and had operating profits in 2004 of £3m on sales of £101m.Sales director Alex Robertson said the firm, which trades under the Rockware brand in the UK, was planning savings and productivity and quality improvements by merging the Rockware and Rexam businesses.However, Mr Robertson said job prospects at Barnsley would be better under Ardagh than they would have been under Rexam.“Our intention is to keep the operation at Barnsley running as a going concern,” he said.Ardagh has plants in Knottingley and Doncaster in Yorkshire, Worksop in Nottinghamshire and Irvine in Ayrshire.It also has sites and businesses in Germany, Poland and Italy.

Rexam makes jars, bottles and other containers for the drinks, food and pharmaceuticals industries, with customers including major fizzy drinks makers, Bacardi and Scottish distilleries.

The disposal will leave it with just its continental European glass operations in Germany, Holland, Poland and Scandinavia, a spokesman for the group said.

Rexam’s chief executive Lars Emilson said the UK glass market was facing a difficult outlook and new capacity in the industry was making things worse.

“After reviewing our options, we felt that, as the number three player in the UK glass industry, divestment in this case was the best course of action,” he said.

Rexam said it would use the proceeds of the sale to pay off debts.

600450 Jobs fears as Rexan sells glass business
Date: 25 May 2005

See more news about:

Others also read

Emirates Glass, a Dubai Investment subsidiary, has won a major contract to supply 140,000 square meters of its premium glass to the prestigious development on the Palm Jumeirah, reaffirming its already established reputation as the single most prominent company in the entire regional glass industry.The deal was announced during the company's participation in the prestigious Big 5 show, the largest annual venue for the entire Middle-East glass contracting industry.
Packagers such as the UK's Rexam and private equity firms are set to vie for pump-sprayer business Calmar, which France's Saint-Gobain (SGOB.
Isra Vision Systems AG supplier of machine vision systems, has successfully improved its market position in display glass inspection with a major order totalling 1.8 Mio Euro.
Jain Scientific Glass Works, manufacturers of glassware for laboratories, is importing glass as raw material from China, which was much cheaper than the local product and abundantly available.
The National Lime & Stone Co. will discontinue production of calcined lime early next month at its Carey plant, the company CEO announced Thursday.
The following stocks are moving in Japanese markets today. Prices are as of 12:55 p.m. at the Tokyo Stock Exchange. Stock symbols are in parentheses after company names.

Add new comment