Amcor bev can and glass business to split

Australia’s Amcor plans to list its glass and beverage can business so it can focus on its core global business of plastics packaging.

In a statement, releases earlier this month, the company said the move would happen in for December, creating a business worth around $1.8 billion.

Amcor and AAPD (Australasia and Packaging Distribution) are both packaging companies, but are actually very different in terms of product segments and geographic focus.

Amcor has global leadership positions in the flexibles and rigid plastics segments, while AAPD operates in the fibre, glass and beverage can packaging markets in Australasia and packaging distribution in North America and Australia.

Amcor chief executive and managing director, Ken MacKenzie, said, “To be a successful market leader, that delivers continuous improvement in customer value, a company must be focused in terms of product portfolio and end markets.

“Over the past six years, Amcor has invested significantly in AAPD to improve its manufacturing capabilities and ensure it is well positioned for growth.

“These investments have been in excess of $1 billion over that period and include the new recycled paper mill, a new furnace at the glass bottle plant at Gawler and a new beverage can line in New Zealand.

“AAPD will continue to benefit from these initiatives in terms of earnings and cash flow.”

Following the demerger, each company will have its own experienced management team and board.

For Amcor, Graeme Liebelt will be the chairman and Ken MacKenzie will remain the managing director and chief executive.

For the new company, which is yet to be named, Chris Roberts will become the chairman, and Nigel Garrard, the current president of AAPD will be appointed chief executive.

Amcor expects completion of the demerger to occur in December 2013, subject to shareholder, court and other approvals.

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