Leading global producer of PET containers, Constar International Inc. announced that it has inked a four year PET packaging supply agreement with Pepsi. The agreement covers supply of both bottles and preforms for cold fill applications beginning on January 1, 2009. The Company believes that the new Pepsi agreement will result in lower sales but, after taking into account the expected net reduction in costs from the restructuring program, will result in higher cash flows from operating activities, net of investing activities as compared to those realized from the Pepsi cold fill business in 2008. In conjunction with the signing of the new supply contract with Pepsi, Constar is undertaking a plan of restructuring to reduce the Company's overhead cost structure. The estimated annual cash overhead savings from the restructuring, including the savings from the previously disclosed closure of the Company's Houston Texas facility, is expected to be approximately US$28-32 mln.
14-Oct-08 
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