AF Colodense and Hochheim to close

28 February 2006


As part of the restructuring proposals announced recently, Amcor Flexibles is to close AF Colodense, in the UK, and AF Hochheim, in Germany.

Chief executive Graham James says: "Following a detailed review of the prospects for both plants, we see no likelihood of any substantial improvement in operating results. We have examined in detail a number of possible alternatives but we believe no viable solution exists to the financial and strategic problems facing these businesses.

"For AF Colodense, the UK market for gravure printed flexible packaging has been characterized by over-capacity, static demand and falling prices, and it has proved impossible to reverse the declining results. AF Hochheim, too, has been unable to generate adequate returns for some years, despite constant efforts by management and employees to reduce operating costs.

He continues: "With the need to align our assets more closely with the demands of our customers we also plan to invest in Amcor Flexibles Halen, in Belgium, and our Eastern European operations in Poland and Russia. This will ensure the remaining group is stronger and has a sustainable platform for growth."

AF Colodense serves the confectionery and snack food markets. It has facilities for gravure and flexo printing and lamination and is one of 11 Amcor Flexibles plants in the UK. AF Hochheim is one of three AF operations in Germany. It has facilities for extrusion coating and lamination and gravure printing and supplies confectionery, dry food and non food customers.

AF Colodense employs 175 people and AF Hochheim 130. Consultation with employee representatives has commenced. Details of the proposed closures have yet to be decided, and until then business activities will continue as normal.

  

Contact

Amcor Flexibles Tel: +44 (0)1452 634 115




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