Operational since 1999 and located in the city of Jundiaí more than an hour’s drive from central Sao Paulo, in the Campinas Region of the São Paulo state, Rexam’s Brazilian factory mainly specialized in plastic injected parts for the manufacture of closures and packaging but also of lipstick tubes and make-up cases, probably has one of the most impressive and most consistent investment program of the Group the world over. "And for a very good reason..., explain officials locally, we have to follow the double-digit annual growth of the local Beauty sector!" Let’s understand "local" in the broad sense since some neighbouring countries like Colombia are getting stronger and stronger.

Delighted?... Thomé Brito, the current CEO of Rexam do Brasil has every reason to be! With an increase in demand easily progressing at a rate of 10% a year, concerns are of a quite different kind. And the industrial investment momentum imposed in the last two years is a proof of this. For the year 2009 only, at the height of the financial crisis, the Jundiai plant acquired its third lacquering line and a new vacuum metallization chamber. The following year, the plant invested in both a laser engraving and decorating equipment and in its first fully automated assembly line. The same year, to supply the South American market, it equipped itself with the second generation mechanism for lipstick tubes which was developed by the group. In addition, the plant has also installed the necessary equipment to provide a full range of airless tubes. "You know that we also assemble the pumps on site since 2004," emphasised Thomé Brito. Finally, the same year, a whole area of the plant was retrofitted in order to receive three brand new injection blow moulding machines to produce lip gloss bottles.

Investing to keep up with demand!

Thomé Brito

Thomé Brito

With 540 people and 13,000 sqm of industrial surface the Jundiai plant is probably one of the largest packaging manufacturing centres intended for the cosmetic sector on the Brazilian territory. "But obviously there is more to it", says Paula Santiago Froes, Sales and Marketing Director, "as demand continues to grow and as visitors can see, we are constantly redeveloping the production cells to fully optimize our production area." Especially since projects from some large customers are very important and concern all areas of the beauty industry, especially make-up. "In fact, this plant was built in 1999 to actually serve this specific segment", says Thomé Brito.

The following years were punctuated by the arrival of new key customers like Natura in 1999, Avon in 2000 and O’Boticario in 2001. The year 2002 marks the start of the production of Surlyn and PCTA based closures. Then in 2004, the factory equips itself to be able to produce pumps and so on. At present, the site in Jundiai houses no less than 47 injection machines, 3 blow moulding machines, 26 assembly lines, 13 lines for decoration and several lacquering and metallization lines. “And yet we continue investing to keep up with the growing demand,” admits Paula Santiago Froes. "Our nonetheless consistent development team, has loads of projects underway."

Rexam could sale its personal care business

On the occasion of its latest interim management statement, the Rexam group announced this week it is open to offers for its Personal Care business of the Plastic Packaging division. An announcement confirming the rumours that have been running in the industry for several weeks.

Rexam’s Personal Care business covers on three markets: Cosmetics, Toiletries and Household Care. But it actually weighs only a little more than 466 million euros of sales and 8,000 employees distributed in 13 factories, to compare with the 5.6 billion euros achieved by the group in its entirety and its 22,000 persons distributed in about twenty countries and in which the beverage packaging business is overwhelming dominant.

An activity which remains interesting nevertheless since Rexam is one of leaders on the markets of pumps for fragrances and lotions and of caps for perfumes and skincare creams. Rexam is also n°1 of the samples market (perfumes and lotions) and of mechanical foaming pumps. Rexam is also leading the lipstick cases market, and ranks second for make-up cases.

In its November 17 release the group says: “Notwithstanding the cost actions we have been taking to protect profit, overall results in Plastic Packaging are below our plans due to lower volumes.”

Rexam recently sold its closures business for USD 360 million.