Amcor is planning more costs cutting which includes axing up to 60 senior and management positions as part of the restructure of its Australian operation, according to the Sydney Morning Herald (SMH).
Also reported was the loss of a contract with food manufacturer Kellogg’s to privately owned New Zealand group Carter Holt Harvey. This is a major blow to Amcor’s carton manufacturing unit, which has been reliant on work from Kellogg’s, sources told SMH.
Plans to close Amcor's medium-sized flexibles plant in western Sydney are expected to go before its board soon. The closure of the plant would remove Amcor from the flexibles manufacturing market in NSW, according to sources.
While Amcor’s flexible business has in the past been highly profitable, in the past year the company has been hit by Asian imports and higher material costs, with sources claiming Amcor is struggling to compete with the prices.
Shares in Amcor have dropped 21 per cent in the past eight months. Amcor declined comment at the time of publication.
