Amcor downsizing in Australia, closing plants

PLASTICS NEWS REPORT

Published: March 5, 2013 10:31 am ET
Updated: March 5, 2013 11:25 am ET

Related to this story

Topics Blow Molding, Beverage, Food packaging
Companies & Associations Amcor Ltd.

MELBOURNE, AUSTRALIA — The rising Australian dollar and cost pressures have pushed global packaging manufacturer Amcor Ltd. to shut two manufacturing sites and to downsize another site.

The company said market pressures mean the plants are now "unsustainable."

Amcor Australasia Managing Director Nigel Garrard made the announcement Feb. 18 while briefing investors on the company's half-year results for the six months ending Dec. 31.

Melbourne-based Amcor makes PET beverage containers, flexible packaging for the food and health-care markets, tobacco packaging, and corrugated boxes. It also has recycling operations.

Amcor is shutting down a Thomastown, Australia, plant that makes metal and plastic beverage closures. The company will divest its small metal closures operation and outsource plastic closures manufacturing to a third party, which a spokeswoman would not identify.

Amcor estimates it will cost A$7 million ($7.1 million) to close the Thomastown plant in mid-2013. Eighty jobs will be lost.

Amcor will downsize another facility in North Laverton, Victoria, which supplies Thomastown with decorated metal products used to manufacture metal closures. Phased downsizing will occur March through June, costing 17 jobs.

Amcor will shut a recycled cartonboard mill in Petrie, Queensland, by the end of the year, costing 220 jobs. "Due to several structural changes in the competitive environment, the mill is no longer covering its cash costs," the company said in a report to investors.

Garrard said the closures and downsizing allowed Amcor to realign its operations to the challenging conditions facing all Australian manufacturers. "The continued strength of the Australian dollar, significantly increasing cost pressures, including in areas such as energy costs, have made it impossible for these sites to remain competitive."

He said Amcor will continue to "adjust" its Australian operations. "While I regret these changes will see co-workers leave the business, we must transform our Australian operations to remain a viable business long term."


Comments

Amcor downsizing in Australia, closing plants

PLASTICS NEWS REPORT

Published: March 5, 2013 10:31 am ET
Updated: March 5, 2013 11:25 am ET

Post Your Comments


Back to story


More stories

Image

New Amcor, Method project taking sustainability to a platinum level

October 16, 2014 11:28 am ET

Amcor Rigid Plastics will have a bottle production operation within a factory which is aiming to be the world's first LEED platinum certified...    More

Image

The PET recycling rate is only part of the story for the industry

October 9, 2014 11:53 am ET

The National Association of PET Container Resources points to the increasing infrastructure and demand for recycled bottles as important trends in...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events