Amcor to demerge Australian packaging business by end of year

By Joseph James Whitworth

- Last updated on GMT

Related tags Amcor rigid plastics North america

Amcor spins off packaging distribution business
Amcor spins off packaging distribution business
Amcor is to spin off its Australasia and Packaging Distribution (AAPD) business which focuses on glass and beverage can packaging by the end of the year.

The firm said the demerger will enhance shareholder value by enabling each company to pursue their own growth agendas and strategic priorities.

Amcor has global 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.

Significant investment

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

It cited an investment in excess of $1bn over the period to include a recycled paper mill at Botany, a furnace at the glass bottle plant at Gawler and a beverage can line in New Zealand.

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

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

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 CEO.

John Pizzey and Jeremy Sutcliffe will also join the Board of the new company.

Chris Roberts and John Pizzey will retire from the Amcor Board upon implementation of the demerger and Jeremy Sutcliffe will continue as a director of Amcor.

The demerger is intended to be implemented via a capital reduction and Scheme of Arrangement.

Ken MacKenzie, Amcor CEO and managing director, 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.

“Although Amcor and AAPD are both packaging companies they are actually very different in terms of product segments and geographic focus.”  

GFSI target

Meanwhile, Amcor Rigid Plastics has announced that all manufacturing facilities have earned or will earn certification by the Global Food Safety Initiative (GFSI) by 2014.

GFSI is a global retailer-driven program that seeks continuous improvement of food safety management systems to ensure confidence in the delivery of safe food to consumers. 

The company has certified 27 of its North American manufacturing facilities and three remaining acquired or greenfield plants are expected to be certified this fiscal year.

Amcor started the process in 2010 and expects all 60 of its production facilities in the Americas to be GFSI certified in early 2014.

Related topics Processing & Packaging

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