Constellium Bags Multi-year Contract From Rexam - Quick Facts

(RTTNews) - Constellium N.V. (CSTM) said it was granted an additional contract to supply can stock to beverage can maker Rexam PLC (REX.L, REXMY.PK). Pursuant to this agreement, Constellium would support Rexam's decision to convert all the can production lines of their two Spanish plants, La Selva and Valdemorillo, from steel to aluminium.

"By partnering with Rexam to convert its can lines in Spain, Europe's second largest can market, Constellium will contribute to growing the share of aluminium use in beverage cans in Europe, currently at 79%," said Laurent Musy, President of Constellium's Packaging and Automotive Rolled Products business unit.

Constellium, which generated 3.5 billion euros of revenue in 2013, expects can makers across Europe to continue converting their production lines from steel to aluminium owing to its various advantages for packaging applications. Aluminium provides an excellent barrier to oxygen, light, and moisture while featuring a shiny appearance. Owing to its lightweight and resilient properties, and the fact that it can be endlessly recycled without loss of property, aluminium contributes to the reduction of freight loads and fuel costs, according to the company.

This contract strengthens a long-standing relationship between Constellium and Rexam.