Apr 25 2007
Amcor announced today, a substantial repositioning of the Flexibles business in Europe.
The primary objective of this program, which is part of the broader “Way Forward” agenda, is to create a fitter organisation with a smaller number of stronger businesses that are focused on customers and markets, consistent with Amcor’s strategy.
The project will deliver an estimated PBIT benefit of €30 million per annum for an estimated net cash cost of €60 million. The majority of the €30 million per annum benefit will be realised from 2009/10.
The overall headcount reduction, excluding divested sites, will be around 900 out of a total workforce of 7600 people. The final outcome will be determined following an extensive consultation process with a range of stakeholders.
Amcor’s Managing Director and CEO, Mr Ken MacKenzie said “This repositioning program delivers a wide range of improvements and better aligns the business to future market trends and customer needs.
“The anticipated benefits are robust and supported by headcount reductions and substantial operational improvements. With this improved operational focus and clearer strategic direction, the business will be well positioned to deliver solid growth and strong returns.”
Objectives
As outlined at the half year results in February, Amcor Flexibles has undertaken a detailed strategic and operational review of its business and a comprehensive repositioning program has been developed. 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.