This week Rexam reported a 28 per cent increase in annual sales to £4.618bn but warned that trading in the second half of 2008 weakened as market conditions deteriorated.

Plastics packaging sales, which comprise personal care, closures and healthcare, were up from £880m to £1,273m, but growth was significantly lower once the acquisition of OI Plastics was taken out of the equation.

Stagnation in personal care

Home and personal care, a personal care division covering injection moulding and mould manufacturing, was the weakest performer in the pack and the only business not to be ahead of last year.

Rexam said demand from key customers in the US was lower than last year but in Europe, where it is less well established, sales volumes doubled.

Dispensing systems and make-up

Meanwhile, dispensing systems and make-up, which are the other personal care businesses, grew slightly over the year.

Rexam said demand for pumps and samplers was lower as customers focused their efforts on refining existing product lines rather than launching new products. Make-up sales, on the other hand, benefited from increased volume demand from key European customers.

Supporting future sales growth in Europe is a new 20,700 square metre plant completed in September in the Burgundy region of France dedicated to dispensing systems and make-up.

Rexam said investment in new products continues to be a priority citing the XD11 fragrance pump and the Oxygen lipstick mechanism as recent examples of innovation.