CXonstar International, a producer of plastic containers for food and beverages which previously said that it intends to focus on plastic packaging for technologically advanced and specialty applications, has announced that it will reduce its exposure to the commodity carbonated soft drink (CSD) market.
Constar CEO Andre Laus said the company requires to direct more of its effort and resources to targeted growth opportunities in packaging markets for hotfill beverage, food, barrier, short-run and specialty products, and new applications.
"With a large contract to supply commodity CSD products expiring at the end of 2012, we had to choose between devoting more resources to low value adding activity, or reducing that activity significantly and sharpening focus where we add greater value," Laus said.
On 1 January 2013, Constar's contract to supply CSD plastic packaging will end, which will mean reduction in operations of the two facilities that were dedicated to supply under that contract - one at Jackson in Mississippi and the other at Havre de Grace, Maryland. The reduced operations will have no effect on production for any of Constar's other business.
