Rexam PLC, a United Kingdom-based packaging company, announced plans to switch the beverage cans it manufactures in Germany from steel to aluminum. The decision follows Germany’s recycling requirements.
According to Rexam, the conversion of the German plant is due to the favorable economics of the UBC in Germany’s new deposit system is the main reason for the conversion.
Germany will be introducing a nationwide return system for one-way containers by next May. Due to the efficient recycling opportunities for aluminum cans it was deemed a more effective step for the company. Also, due to the relative high price for the aluminum cans will likely result in a greater amount of the containers collected.
The conversion of the plant, in Berlin, Germany, will begin early next year, and is expected to be complete by the end of the second quarter of 2006. After the conversion the company expects the plant to increase from two to three lines. The cost of the conversion is expected to be around 24 million Euros ($US29.2 million).
Rexam has a total of 20 can plants in Europe.
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