The acquisition includes four manufacturing sites in Cape Town, Durban, Amcor Flexibles Origination Centre (near Durban), Port Elizabeth and a sales office in Johannesburg.
'Michael Orye, an Amcor veteran'
Clinton Farndell, managing director, Amcor Flexibles South Africa, (AFSA) formerly MD, Nampak Flexible, speaks to FoodProductionDaily about the merger.
“I will manage the four operations with the plant general managers reporting directly into me,” he said.
“I report into Michael Orye, an Amcor veteran, who is managing director, Sub-Saharan Africa. The Johannesburg sales office reports into Sean Mainstone, sales director, Amcor Flexibles South Africa.”
According to Farndell, AFSA is now looking at opportunities to improve its product offering, including improved barrier properties.
“We are working on our 100 day plan to integrate Nampak Flexible into Amcor,” he added.
“The integration process is going very well and will position Amcor Flexibles South Africa to deliver profitable growth.
The multi-nationals are investing in Africa
“The market is definitely moving towards flexible packaging, especially in single serve portions that offer higher barrier properties to protect the product.
“The multi-nationals are investing in Africa, and this offers an opportunity to supply them with innovative, high quality packaging. We believe through an effective South Africa-based supply chain, we can help them grow whilst managing the risk of supply in Africa.”
The challenges for the South African flexibles industry are predominantly due to increasing amounts of imported packaging, increased price pressures and rapidly rising input costs in South Africa.
However, Nampak has a stable footprint in Africa and generates net sales of approximately $94m per annum. The principle manufacturing locations are in Durban and Cape Town, with smaller facilities at Port Elizabeth.
Amcor Flexibles South Africa employs about 750 co-workers.
Farndell believes the top trends in this region driving growth will be; single-portion packs; resealability and easy opening; BOPP and polyester materials with improved barriers for lightweighting and downgauging; Hot melt, replaced by heat seal, and heat seal replaced by water-based applications that remove solvent retention in the laminate; and a shift towards alcohol in pouches eg bag-in-box wine.