Combined annual pre-tax savings of $25M are the aim of a global cost savings programme announced by the Chesapeake Corp. It is expected to include the possible closure or consolidation of several facilities and "broad based workforce and overhead reductions", as well as cost savings from improvements to operating processes.
Some of the initiatives are already underway, such as the proposed plant closure of the Birmingham, UK, plant, and full implementation of the plan is expected over the next two years.
"Global business conditions remain highly competitive and rationalizations within our customer base have had a negative impact on our operations," says Chesapeake president Andrew J Kohut. "When these initiatives are completed, we expect to emerge as a more cost effective company, better able to compete in today's global marketplace."
Specific restructuring initiatives and the associated charges and expected savings will be disclosed as specific projects are proposed.
Chesapeake is one of Europe's major suppliers of folding cartons, leaflets and labels, as well as plastics packaging for niche markets. The company has more than 50 locations in Europe, North America, Africa and Asia and employs approximately 6,400 people worldwide.
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