Nampak Ltd. plans to reorganize its flexible packaging business following its purchase of rival Malbak Ltd.
Both companies are based in South Africa and have major operations in Europe. Nampak plans to spend 100 million rand ($10 million) on the integration.
There are no immediate plans for plant closures and Nampak ``is committed not to forcibly lay off'' employees, said John Bortolan, managing director of the Johannesburg company. But he added that the process could result in a need to reduce the work force.
The reorganization will affect the company's flexible packaging and paper carton areas. Those businesses represent 9.5 percent of Nampak's $1 billion in total sales.
Nampak has set up two integration teams, one led by flexibles director Clarence Miller and the other for its paper division to develop short- and medium-range goals, Bortolan said.
Nampak has plastics, paper and metal packaging operations, with 176 manufacturing plants employing nearly 23,000 people in 18 countries.