Australian packaging company Amcor has announced plans to demerge its Australasia and Packaging Distribution (AAPD) business from its other operations to pursue their own growth agendas and strategic priorities.
Amcor CEO and managing director Ken MacKenzie said Amcor and AAPD are actually very different in terms of product segments and geographic focus, although they are packaging companies.
"Amcor has global leadership positions in the flexibles and rigid plastics segments, while AAPD operates in the fibre, glass and beverage can packaging markets in Australasia and packaging distribution in North America and Australia," MacKenzie added.
Over the past six years, Amcor has invested in excess of $1bn in AAPD in a bid to improve its manufacturing capabilities.
According to Amcor, the investments included a new recycled paper mill at Botany, a new furnace at the glass bottle plant at Gawler and a new beverage can line in New Zealand.
In terms of earnings and cash flow, the glass and beverage can packaging unit AAPD will continue to benefit from the initiatives.
Amcor intends to implement the demerger through a capital reduction and scheme of arrangement.