"Generating our own growth requires increasing customer focus, building on our strength in innovation and continuing to drive our M&A agenda," the company says in a statement. "We have made good progress in each of these areas. The initiatives announced are focused on the Flexibles segment, which includes Tobacco Packaging, and are designed to accelerate the pace of adapting the organisation within developed markets through:
- Footprint optimization, to better align capacity with demand, increase utilization and improve the cost base. This will likely result in the restructuring or closure of several plants in developed markets.
- Streamlining the organization, particularly in Europe, to enable greater customer focus and speed to market by reducing complexity. This will also result in lower overhead costs.
Amcor CEO and Managing Director Ron Delia says, “Amcor has strong flexible and tobacco packaging businesses in the developed markets with leading market positions which provide a solid platform for future growth. To build on that strong foundation, it is critical we continue to take decisive steps to align the organization with market growth opportunities and customer needs.
“The initiatives we have announced are important enablers of our plan to drive greater customer focus and to generate faster organic growth in our Flexibles segment. In addition to reducing complexity and ensuring the cost position of the businesses remains competitive, the cash invested will generate attractive returns. Combined with the benefits from the recent Alusa acquisition, the Flexibles segment is expected to deliver pre-tax earnings growth of more than US$100 million over the next 3 years.