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Amcor completes Alcan acquisition

By Rory Harrington , 02-Feb-2010
Last updated on 04-Feb-2010 at 12:54 GMT

Global packaging giant Amcor today announced that its acquisition of Alcan Packaging had been completed as it spelled out what the move would mean for suppliers and customers.

The Australia-based company said that the US$1.948m takeover of Alcan Packaging Food Europe, Alcan Packaging Food Asia, as well as its global pharmaceutical and tobacco operations would give Amcor “leading global positions in the nominated strategic growth markets for flexible packaging and folding carton packaging for tobacco”.

Amcor now has an estimated 35,000 employees at more than 300 sites across 43 countries. The firm vowed to expand its range of products and increase its geographic coverage.

Ken MacKenzie, Amcor’s managing director and CEO, said: “From a strategic perspective, the businesses we have acquired are strongly aligned with our nominated growth segments, and provide the ability to substantially improve the value proposition for our customers.

“We are now focused on ensuring seamless integration of these businesses and on achieving the synergies and opportunities offered by this acquisition.”

Implications for suppliers

Amcor sought to reassure both its historic suppliers and those inherited from Alcan as it stressed it would be business as usual “until further notice”. But it suggested that a review currently under way could see some real changes in both the medium and long term.

For the immediate future, suppliers were instructed to continue working with their current contacts at both companies until told otherwise. An organisational structure for procurement is currently being put in place that would clarify contact points in the long term. Suppliers will be notified directly of either any change to their procurement representative or combined supply arrangements once this review was finished, said Amcor.

Companies should continue to send their invoices to current contacts. Billing details will remain unchanged, unless the instructed otherwise, said Amcor.

It indicated that change was a possibility in the medium term as “the combined company will be looking to partner with suppliers who can help us contribute to the success of the new Amcor”.

Long term

Addressing how the buyout would affect supply purchases in the long term, Amcor said its extended presence across the globe would increase its “flexibility to source from both global and local suppliers. It added the combined business would “provide volume and development opportunities for suppliers”.

Amcor confirmed that in the long term, its products could be moved to a different location if it considered there would be benefits based on “geographic proximity, expertise and capacity”. It said that "all relevant feedback" would be looked at when making such plans.

Unsurprisingly, the company sought to emphasise the positives for suppliers, stressing the new company would provide greater stability of demand, enhanced investment opportunities in product development and a more versatile global footprint.

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