Rexam says margins on U.S. specialty cans to reduce next year
Nov 13 (Reuters) - Rexam Plc, the world's second-largest beverage can maker by revenue, said margins on certain U.S. specialty cans would reduce next year as aluminium premiums have surged higher.
Aluminium premiums, or the cost to get metal out of storage, have soared to all-time highs in Europe and North America due to strong demand and restricted access to the metal.
The company, which makes aluminium cans for Coca-Cola , AB InBev, Heineken, Carlberg, Red Bull, Pepsi, said it is reviewing its cost base further.
Aluminium premium has increased to $500 per tonne, representing an additional cost of some 30 million pounds ($47.32 million) for next year, Rexam said.
The premium was about $300 at the beginning of the year, Chief Executive Graham Chipchase had said in August. (1 US dollar = 0.6340 British pound) (Reporting by Aashika Jain in Bangalore; Editing by Feroze Jamal)
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