Bpi.consumer VMB trumps Amcor to Allied Bakeries contract

By Guy Montague-Jones

- Last updated on GMT

Related tags: Employment, Amcor

Amcor Flexibles has lost out to Bpi.consumer VMB in bidding to secure a bread bag contract with Allied Bakeries in the UK.

Bpi.consumer VMB has won a three-year contract worth £30m to supply Allied Bakeries with bread bags – a business deal that will lead to the creation of 25 new jobs at its Worcester plant.

During a visit to the factory last week local MP Mike Foster said: “It is obviously very welcome news to hear that another of our local firms has secured a major contract for new business for the years ahead.”

But PackagingNews.co.uk has reported that the contract switching hands is not all good news.

Amcor cuts jobs

Amcor Flexibles lost the contract and is now in consultation with unions and staff over the loss of 75 jobs at its Ilkeston site, which currently employs 140 people.

In a statement, Rob Baxter, general manager of the Ilkeston factory, said: “We have now begun a process of consultation with our employees and their representatives regarding this situation, since the company has proposed that around 75 employees be made redundant.”

Baxter said the company would do everything it can to soften the blow and will examine all possibilities to preserve jobs at the plant or elsewhere within Amcor.

Amcor is currently waiting to hear back from regulators about its offer to buy the European and Asian arms of Alcan Food Packaging. Back in August the company said it was offering $2025m (€1434m) for the food division together with the pharmaceutical and tobacco businesses at Alcan.

The parts of Alcan Packaging that Amcor has now offered to acquire would add $4.1bn to its AU$9.53bn ($7.86bn) turnover. The deal would also increase the size of its workforce from 21,000 employees to 35,000 and add 80 plants to its existing 226 sites worldwide.

Related topics: Processing & Packaging

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