Flexible packaging products manufacturer Bemis is planning to close two manufacturing facilities and separately cut about 300 jobs as part of its measures to reduce cost structure.
The company unveiled its restructuring and cost savings plan to improve profitability and efficiency.
Bemis did not disclose the facilities that will be closed. However, the company said work undertaken at those plants will be transferred to other of its locations.
One of the facilities is due to be closed this year and the other in 2018. The company said it will assess opportunities to consolidate further facilities.
As part of the plan to reduce its administrative support cost structure to align with the existing business environment, Bemis is eliminating around 300 positions, or 5% of the global administrative workforce, over the next three years.
The cost savings from these changes will be about $20m in the next three years.
In April this year, the company started a review to align its US manufacturing and administrative cost structures. Due to the challenges in the Brazilian economic environment, the scope of the company’s review was expanded to include its entire global business.
The annual savings run rate are targeted at $55m to $60m, with estimated timing of 5% to 10% in 2017, 50% to 60% in 2018, and the remainder in 2019.
Bemis president and CEO William Austen said: “We are focused on improving our business and further positioning ourselves for long-term profitable success.
“As we begin to implement the first steps of this cost savings plan in 2017, we will also continue our comprehensive review to finalize the remaining cost savings, to outline future capital spending, to explore ways to offset headwinds of the current economic environment in Brazil, and to reshape our go-to-market efforts to align with the evolving U.S. packaged food landscape.”
Headquartered in Neenah, Wisconsin, Benis supplies flexible and rigid plastic packaging used by food, consumer products, healthcare, and other companies globally. The company employs about 17,500 people worldwide.
