Rexam may sell personal care packaging business

20 November 2011 (Last Updated November 20th, 2011 18:30)

European drinks can maker Rexam has announced it is considering selling off its personal care packaging business.

European drinks can maker Rexam has announced it is considering selling off its personal care packaging business.

The division makes plastic perfume bottles, deodorant packaging and air fresheners. Rexam said it reported weak performance in the second half of the year.

Graham Chipchase, Rexam chief executive, said the company's overall results in plastic packaging are lower than expected due to lower volumes and it is exploring all options for the segment.

The company's European beverage cans unit is expected to absorb the £20m ($31.6m) of higher metal conversion costs, reports Reuters.

The beverage packaging unit produces 60 billion cans each year, making up around 80% of Rexam's sales. According to the company, it is set to deliver an improved underlying operating profit in 2011.