In a statement published today (1 August), the global packaging giant said the time was right to split its Australasia and Packaging Distribution (AAPD) business from Amcor's other operations.
Amcor said the demerger of AAPD into a separately listed company on the Australian Securities Exchange would enable both the new Amcor and the separated business to pursue their own strategies and growth plans.
The new Amcor will focus on making flexible and rigid plastic packaging and tobacco packaging mostly for overseas markets, while AAPD will focus on the fibre, glass and beverage can packaging markets in Australasia, plus packaging distribution in North America and Australia.
'Global leadership'
Amcor chief executive and managing director Ken MacKenzie 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.
"Over the past six years, Amcor has invested significantly in AAPD to improve its manufacturing capabilities and ensure it is well positioned for growth. These investments have been in excess of $1 billion over that period and include the new recycled paper mill at Botany, a new furnace at the glass bottle plant at Gawler and a new beverage can line in New Zealand. AAPD will continue to benefit from these initiatives in terms of earnings and cash flow."
AAPD has 26 large-scale plants, employing about 5,000 workers. Two-thirds of its sales are generated in Australasia and one-third from North America.
The demerger, which needs shareholder approval, is expected to be completed by December 2013.
