Amcor to sell PET bottle operations in Europe

28-Feb-07

Amcor- the Australian packaging major plans to sell its PET bottle operations in Europe. Germany’s Schmalbach Lubeca business that Amcor bought over in 2002, added create a £1.2 bln turnover operation with a significant UK presence. This decision to hive off the European operations has been arrived at after a strategic review of the business. The review conducted by the company concluded that though several attractive growth opportunities exist across the region, the PET industry is clearly poised for rationalisation and consolidation. In a bid to prioritised its growth opportunities, Amcor has decided that it cannot fund its global growth plans and also lead the European PET consolidation process through acquisition, leading to the decision to sell part of, or all, of the European PET business. In a similar review of its flexible packaging business in Europe, Amcor arrived at a decision that it needs to increase its focus on lower cost manufacturing regions such as southern and eastern Europe. The strategic changes will eventually lead to total asset sales of A$1 bln (€600 mln) and the closure of 10 plants.