Amcor Tobacco Packaging announced plans to close its operations in Neumunster, Germany, and build a new tobacco packaging plant in Indonesia.
Amcor is winding up its Neumunster operations owing to the overcapacity in gravure printing across Western Europe.
The closure process will take place over the next four months with the final closure anticipated on or before 31 December 2014. Production will be managed from other packaging sites across western Europe.
With an eye on emerging markets, Amcor also announced construction of a new greenfield tobacco packaging plant in East Java, Indonesia, which is expected to become fully operational by the end of 2015.
The new plant will be built to supply existing contracts and position the business better for the production of additional volumes. The main equipment for the new facility will be supplied from Amcor's available surplus assets.
Amco said Indonesia is the third largest tobacco market in the world and the company is focusing on long-term expansion.
Global Indonesian Voices quoted Amcor president Peter Konieczny as saying: "Amcor will be the first international tobacco packaging player to establish a manufacturing presence in Indonesia, bringing new jobs, technology, and innovation to the country."
Over the past three years, Amcor has supplied packaging from the company's existing sites in Asia, including Korea, Malaysia, the Philippines and Singapore.
