Packaging solutions provider Sealed Air has unveiled its Reinvent SEE strategy to enhance profitable growth and earnings capacity.
As part of the Reinvent SEE strategy, the company will focus on areas such as speed to market for new innovations, SG&A productivity, product cost efficiency, channel optimization and customer service enhancements.
The company will invest in technology and resources to concentrate more on new and existing high-growth markets, doubling the firm’s innovation rate in the next five years.
Sealed Air is also planning to simplify the structure to establish more efficient organization.
The firm intends to extend SEE Operational Excellence across entire organization through upgrading end-to-end processes.
It will focus on improving manufacturing, as well as global network in areas such as procurement, conversion cost productivity, materials yield and network efficiency.
Sealed Air will also leverage its wide distribution network to increase market share in existing and adjacent markets, and also invests in digital systems and processes to enhance cycle time and responsiveness.
Sealed Air’s board of directors have approved a new three-year restructuring program for annualized savings between $215m and $235m by the end of 2021.
The restructuring program costs comprise of headcount related costs between $110m and $125m and other associated costs between $70m and $80m, as well as capital expenditures of around $10m.
The firm’s existing restructuring program, which is designed to eliminate stranded costs, is slated to be completed in 2019.
In addition, the firm noted that total annualized savings from restructuring is estimated between $240m and $260m from 2019 to 2021.
Sealed Air president and CEO Ted Doheny said: “Over the last several months, we conducted a thorough assessment of our entire organization and the market opportunities available across the global packaging industry.
“This assessment confirmed that we are well positioned to continue delivering organic growth above our core markets. It also reinforced the need to grow market share and move into adjacent markets with greater speed and efficiency, as we accelerate returns on our highly differentiated innovations.”
With around 15,000 employees in 122 countries, Sealed Air produces Cryovac food packaging solutions and Bubble Wrap brand cushioning solutions.