SAO PAULO, BRAZIL — Rexam plc of London is increasing its presence in the Brazilian market by acquiring its partner's share in two local joint ventures and installing two other facilities. The actions total $10 million in investments.
On March 20, Rexam bought for an undisclosed amount the 50 percent stake that Sao Paulo-based Brampac SA — formerly Itap SA — had owned in Rexam Itap Medical Ltda. and in Rexam Itap Metallising Ltda., both located in Cambe.
After the acquisitions, the companies' names were changed to Rexam Medical Ltda., which produces polyester and paper pouches for sterilizable medical packaging, and Rexam Metallising Ltda., a 440,000-pound-per-month film metalizer.
Brampac's principal owner, Jacques Siekierski, has a minority interest in Sao Paulo-based Dixie Toga SA, which recently formed a joint venture with Rexam's competitor, Bemis Co. Inc. of Minneapolis.
``When Dixie closed the deal with Bemis, it became obvious for us that something should be done. We kindly agreed to buy Brampac's share in both joint ventures, in order to avoid any future inconveniences,'' said Brian Sinclair, Rexam's representative in Brazil.
Meanwhile, in mid-March, Rexam started operating a closure plant in a leased area in Araras, near Sao Paulo. The new firm is called Rexam Sunbeam do Brasil Tecnologia Ltda., and was designed to produce, during its first year of activities, 60 million polyethylene spout closures for milk and juice cartons.
Sinclair said Rexam imported an injection molding machine and necessary molds from the United States.
Rexam also is building a 21,500-square-foot injection molding plant in Jundiai, close to Sao Paulo, dedicated to cosmetic packaging, such as lipstick cases and makeup kits, as well as pumps for perfumes. Rexam Beauty Ltda. will start production within a year and will process ABS, polypropylene, PE and some engineering resins.
According to Sinclair, Rexam will invest another $10 million in Brazil during the next two years. Rexam's business units in Brazil are headed by Sao Paulo-based Rexam do Brasil Holdings Ltda., created last September.
Besides controlling these four operations in Brazil, Rexam has a 50 percent stake in Interprint Ltda. of SÃo Bernardo do Campo, which also makes ABS telephone cards.