Following an assessment of the current and future market for beverage cans in Russia, Rexam Beverage Can Europe & Asia has decided to cease all production at its Dmitrov plant near Moscow at the end of the high season.
Volumes in the Russian beverage can market have reduced significantly owing to the effects of the global economic recession. As Rexam’s strategy has always been, and continues to be, to match its capacity to market requirements, ceasing production at the plant was seen as the logical decision.
Customer requirements for cans and ends will continue to be met by Rexam’s other Russian plants where there is sufficient capacity to meet any foreseeable volume levels. Dmitrov’s can lines will be mothballed while its end making equipment will be installed at Naro Fominsk.
Tomas Sjölin, sector director of Rexam Beverage Can Europe & Asia, commented: “We continuously evaluate our capacity position. This is particularly true in times of significant market slow-down such as Russia is experiencing at present. We have considered all options to optimise our network and have decided that ceasing production at the Dmitrov plant is the best course of action.”
