Shifting economic landscape prompts Elopak European ops overhaul

By Rory Harrington

- Last updated on GMT

Related tags: European union, Vice president, Europe

Elopak announced that an overhaul of its European organisation has been fuelled by the need to adapt to the current economic crisis and an industry landscape transformed by consolidation and M&A activity.

The Norway-based liquid packaging specialist said that operations across the bloc had been pooled into one regional structure - headed by Stephen Naumann.

The restructuring has seen the creation of six new European market areas – with each given the task of carrying out its own account strategy in a bid to bring operational management closer to its customers, said the company in a statement to FoodProductionDaily.com.

Operations in the UK and Ireland have been affected by the restructuring with the new director based in the Netherlands rather than in northern England, as previously. But Elopak stressed that “the UK and Ireland operation will remain in and be run from the Manchester office”.

The firm said the main change was a structure that was regionally driven rather than country specific and said some changes had been made in top management across some countries.

Cross border mergers and major acquisitions

It said the revamp had been launched in response to mirror “changes in the industry landscape from increasing cross-border mergers and major acquisitions”,​ it added. The new structure would also create cost savings for the company.

“The challenging market trends that are consistently changing our customers’ business operations demand a more efficient and focused approach to account management,”​ said Naumann, who becomes executive Vice president, Region Europe. “Combining all operations across Europe under one structure but with clearly defined market areas creates cost efficiencies, operational synergies and aligns our account management operations with market dynamics.”

While the regional headquarters will set overall strategy, planning, targets and benchmarking programmes, the market areas assume responsibility for individual account strategy, planning and execution.

“Today’s markets with their unique challenges requires stronger business co-operation to enable growth and to maximise the many opportunities created by our innovative customers Europe-wide,”​ said Naumann.

Underpinning expansion

The operational changes will also sustain its expansion strategy following the 2011 opening of new flagship plants in Russia, Germany and Denmark.

The Russian 10,000m²converting facility in St Petersburg is now operational serving dairy and juice, fresh and aseptic markets. In Germany, the new filling machine manufacturing plant in Mönchengladbach will become fully operational later this year. This comes after the announcement late last year of its new board coating line as an extension to its converting factory in Aarhus, Denmark, said Elopak.

Related topics: Processing & Packaging

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