Australian packaging company Amcor Ltd. reportedly has found a buyer for seven of its European PET plants.
The Melbourne company announced plans in February to rationalize 38 plants in 15 European nations to focus production efforts on lower-cost locations in southern and eastern parts of the continent.
News reports have said Spanish chemicals group La Seda de Barcelona SA expects to finalize the purchase of seven Amcor plants by late September or early October. They quote a Le Seda spokesman saying the company had not determined a purchase price yet.
The locations of the seven plants were not specified.
The Spanish company, whose name translates as “the silk of Barcelona,” was founded in 1925 as a textiles company but now also produces pharmaceuticals, petrochemicals and PET resin.
In a statement to the Australian Stock Exchange in April, Amcor Chief Executive Officer Ken MacKenzie detailed a 60 million-euro restructuring plan for the company’s European operations.
MacKenzie did not specify the number of plants to be sold, but said that by the end of the project, about one-third of Amcor’s European manufacturing will be in lower-cost regions.
He estimated the plan will deliver annual savings of roughly 30 million euros starting in 2009.
The project is expected to cut 900 of Amcor’s 7,600 European employees.
Australian packaging company Amcor Ltd. reportedly has found a buyer for seven of its European PET plants.