LONDON—Rexam plc, in the midst of major restructuring, announced its 17th divestiture since December: Belgian food container molder Rexam Plastic Packaging NV.
The Wetteren firm was sold to DV Industri A/S of Copenhagen, Denmark, for £6.1 million (US$9.76 million). Rexam Plastic Packaging molds thin-wall containers for ice cream and dairy products.
The firm has 30 Netstal presses, with 60-400 tons of clamping force, and sales of £10 million ($16 million), said London-based Rexam.
David Jones, chief executive officer of Rexam Octagon, the division formed to sell off noncore group assets, said the Belgian unit employs about 80.
DV Industri has four business divisions, including plastic packaging, and already runs two molding plants: Jorni Emballage A/S, a molder of thin-wall food containers in Jylland, Denmark; and custom molder Tipac AB of JÃ¶nkÃ¶ping, Sweden.
DV sees its Belgian acquisition as an ideal fit, bringing it closer to a growing Western European market for thin-wall containers, said Chairman Christian Kolding. The public firm has been seeking a platform for export business to other European areas and the United States, Kolding said.
He said DV will invest in upgrading equipment at the Belgian unit, and plans to add new, multicavity presses, to ``bring it up to Danish and Swedish standards.'' He said the plant has suffered from underinvestment under Rexam.
DV business development manager Troels Kroigard said the new owners may move some machinery from other DV operations to Wetteren. DV's other two plants each have sales of about $19 million, he said. Jorni Emballage makes polyethylene and polypropylene containers on 70 presses.
This year, DV is investing around $4.8 million in molds and five new injection presses for its Swedish custom molding plant, he said.
DV's packaging division has sales of about $47 million a year.