Packaging giant Rexam is planning to build a can making plant in Austria exclusively to serve energy drinks group Red Bull.

The London-listed company said yesterday (1 June) that it would spend over GBP45m (US$83.9m) on the project over the next two years with the site expected to be up and running by the end of 2007. The plant will be built close to the site of Red Bull's filling partner, Rauch, in the Austrian town of Nüziders.

Lars Emilson, Rexam's chief executive, said: "Beverage can making capacity in Europe is very tight and we have seen it stretched to its limits recently. We believe that this situation is likely to continue, given the good growth prospects.

"We have had a long and close relationship with Red Bull. We recently announced the extension of our exclusive contract with them and this wall-to-wall plant is a natural development of that relationship."