Amcor combines US and Australasian operations

By Rory Harrington

- Last updated on GMT

Related tags Investment Marketing Economics

Amcor is to merge its Australasian operations and North American packaging distribution division as it seeks to send a “strong signal to the market” over costs and service standards.

The packing giant announced the move at it confirmed the US Amcor Packaging Distribution chief Eric Bloom would be moving from Los Angeles to Melbourne to take up a new role under Australasia president Nigel Garrard.

The common ground occupied by the US and Australian corrugated businesses and the chance to “leverage the skills of the Packaging Distribution business into the Australian market” ​had been the main divers behind the move, said the company.

“This new structure is a strong signal to the market that there is an important role for distribution and manufacturing to work together worldwide to provide a unique value proposition,”​ added Amcor.

Nigel Garrard said: “This is an opportunity for the business in Australasia to bring the sales and marketing expertise of the Packaging Distribution business to this market.​”

Capital investment

The move comes in the wake of a series of announcements by the firm to invest over A$700 million to major capital investments in Australasia. These include a new paper mill in Sydney, major expansion of its glass business and a new beverage can line in New Zealand.

Eric Bloom said the consolidation was an opportunity to enhance the firm’s corrugated, specialty box and distribution operations.

“With the new paper mill being commissioned in calendar year 2011, the business will be the low cost manufacturer and have a superior product offering,”​ he added. “This means we will have a truly differentiated product in terms of value and performance and it will be my task to create a service culture that when combined with superior product performance, sets us apart from our competitors.”

The merging of the North American operations – formerly known as Amcor Sunclipse – would be effective immediately and the two companies would be financially combined in the 2010/11 accounts.

Last month, Peter Brues, president at Amcor Flexibles Europe & Americas, told said the company’s prime focus in the wake of the takeover of Alcan would be on optimising it supply scales and cutting cost bases to leverage profits both for the company and its customers. He did not rule out some rationalisation but stressed the firm would target putting an administrative structure in place to “maximise cross fertilisation and avoid duplication.”

Related topics Processing & packaging

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