Amcor sells two flexible packaging plants in Europe

by Editor
Friday, April 25, 2008

Amcor announces that it has entered into an agreement to sell two flexibles packaging plants. They are located at Lund in Sweden and Somerset in the United Kingdom and will go to a Swedish private equity group, Accent Equity 2008.

The plants are primarily involved in the production of unprinted films for the meat and fish segments and have combined sales of approximately €85 million.

These divestments are part of the previously announced program of rationalisation and restructuring of the overall flexibles operations in Western Europe. The primary objectives of this program are to:strengthen market positions through better leverage of technology and manufacturing capabilities; increase weighting in lower cost regions, particularly in Southern and Eastern Europe; improve alignment to customer needs and market trends; and create a strong platform for innovation and continued growth.

The overall restructuring program continues to make solid progress and remains on target to deliver an estimated PBIT benefit of €30 million per annum for an estimated cash cost of €60 million, with the majority of the benefits realised in the 2009/10 financial year.