AGI-Shorewood exits tobacco packaging and gravure printing in most of its regions worldwide. Consumer gravure packaging Smiths Falls plant in Canada remains with AGS.
Amcor Limited will acquire selected printing assets of AGI Shorewood's (AGS) tobacco packaging and specialty folding carton operations in South Korea, Mexico, China and the USA for a total consideration of $114.8m. According to Amcor, the acquisition will expand its business in the high growth markets in Asia and Latin America while generating attractive returns for the company's shareholders.
Following the transaction AGI-Shorewood is going to focus on customers in core packaging markets and sectors, such as health and beauty, pharmaceutical or home electronics in North America and Europe and on growing regions across Asia, Poland, Mexico and Latin America, the company explained. The $114.8m deal with Amcor excludes AGS's consumer gravure packaging plant in Smiths Falls in Canada.
Petrie cartonboard mill set for closure, Amcor to slash 300 jobs in Australia,
At the presentation of its business results for the six months ended 31 December 2012, Amcor unveiled its plans to close the cartonboard mill in Petrie, Queensland. According to Amcor, Petrie is the only recycled cartonboard mill in Australia. The mill produces 140,000 tpy of grayback and whiteback duplex board, supplying folding carton manufacturers across Australia and New Zealand. "Due to several structural changes in the competitive environment the mill is no longer covering its cash costs," Amcor explained. The closure is expected by December 2013.
Besides closing Petrie cartonboard mill Amcor will also discontinue production at its beverage closures manufacturing site in Thomastown, Victoria, while company's closures manufacturing site at North Laverton in Victoria is to be downsized, Australian media reported on Monday, 18 February. Amcor blames its decision on the high value of the Australian dollar and increasing cost pressure. A total of 300 people will be affected by the redundancy measures, media reports say.
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