Rexam has taken a 50% stake in the joint venture representing a cash investment of $24m (£12m). As this is a fifty-fifty joint venture, it will be accounted for as an associate.
The greenfield plant, located in Amatitlan, Guatemala, was completed in December 2006 and has a current capacity of approximately one billion cans.
The Central American beverage can market as a whole is growing at a rate of about 6% per annum which is expected to continue in the near term. Rexam already has a beverage can making plant in Queretaro, Mexico, and the joint venture strengthens its presence in the region.
Commenting on the joint venture, Leslie Van de Walle, Rexam’s CEO, said: “Emerging markets are a key component of Rexam’s strategy. This joint venture is a very attractive growth opportunity for beverage cans. It gives us a firmer foothold in this growing region and enables us to fulfill our commitments to global and national customers on a local basis.”