Presentations describing the business will be made by senior members of the Rexam management team followed by site visits in the Chicago area involving a beverage can plant, a can end plant and a Plastic Packaging facility incorporating plants for Home & Personal Care, Pharma packaging and mould making. The presentations will be made available on www.rexam.com.
During the presentations, Rexam will provide an update on its Plastic Packaging operation. The majority of the Plastic Packaging sector continues to trade in line with our expectations. However, customer product launches in Make-Up anticipated at the August half year results have not materialised. Whilst this is expected to result in flat profits for Plastic Packaging in the second half compared with the first half 2006, overall it will not have a material effect on Group profits for the year. Rexam is now initiating the necessary actions to reduce the cost base of its Make-Up operation, largely in South East Asia, resulting in a restructuring charge in 2006 of approximately £10m.