Drinks can manufacturer Rexam has warned if a rise in aluminium prices is sustained it could generate an extra £30 million in costs for the company.
In an interim management statement for the third quarter of 2014, the firm said aluminium prices had risen to $500 per tonne.
“If this level were to be sustained, it would represent an additional cost of some £30 million for next year versus 2014,” said the statement.
Rexam, who provide cans for Coca-Cola, Pepsi and Heineken, also said manufacturing costs in its Brazil operation were predicted to be hit by higher energy prices.
“Brazilian energy costs are expected to increase by £15 million in 2015 as unprecedented drought has raised the cost of hydroelectric power,” said the company.
Despite the cost risks, Rexam said