Rexam announced 23 May/05 that it has sold its glass business in Barnsley, to Ardagh Glass for a cash consideration of £50M. The proceeds will be used to pay down borrowings. In 2004, the Barnsley business, which employs 700, had an operating profit of £3M on sales of £101M. At 31/12/04, it had net operating assets of £59M. Commenting on the sale, Lars Emilson, CE, said: "The UK glass market is facing a difficult outlook & new capacity coming on stream will only exacerbate the situation. After reviewing our options, we felt that, as the number three player in the UK glass industry, divestment in this case was the best course of action. Rexam remains firmly committed to its glass customers & the glass container business. We continue to focus on further developing our glass business in N Europe, where we have a solid market position, & in the fast growing markets of eastern Europe.
