Amcor realignment strategy progresses with sale of UK specialist plant

AF Camvac is a specialist plant supplying flexible barrier film mainly to converters and as such operates in a different market to our other Flexibles businesses. The decision to sell this site fits in with the Flex 1 strategic review to reposition our business and create a more focused product portfolio.

The primary objectives of this program are to:

· Strengthen market positions through better leverage of technology and manufacturing capabilities;

· Increase weighting in lower cost regions, particularly in Southern and Eastern Europe;

· Improvement alignment to customer needs and market trends; and

· Create a strong platform for innovation and continued growth.

The overall restructuring program continues to make solid progress and remains on target to deliver an estimated PBIT benefit of €30 million per annum for an estimated cash cost of €60 million, with the majority of the benefits realised in the 2009/10 financial year.

Amcor Flexibles Food MD Gérard Blatrix explains the rationale behind this decision: “Amcor is focusing its businesses strategically to deal with end user’s in selective market segments. AF Camvac does not operate in these segments but is a profitable business. The future outlook for the business is sound but it was felt that it would thrive better under a shareholder for whom the business would be a strategic asset. Gil is providing this environment.”

“We thank everyone at AF Camvac for the contribution they have made in the past for Amcor and wish them all well for the future under their new ownership.”