BRUSSELS, Belgium, Feb. 6, 2020 (Fastmarkets RISI) -AR Packaging is looking at ways to increase its operational footprint in Switzerland. With the recent acquisitions of rlc packaging group and K+D, the firm ramped up its footprint in central Europe. “Analysis following the recent takeovers has shown the need to take actions in Switzerland,” the company said in a statement, adding that one alternative is to focus production at the K+D plant in St. Gallen.
“We know that we can run successful plants in high-cost countries such as Switzerland, provided that the infrastructure is set up efficiently,” Harald Schulz, president and CEO of AR Packaging, said.
“The plant located in Spreitenbach has not performed as expected for some time and one scenario is therefore to move a substantial part of the production from Limmatdruck l Zeiler.” Discontinuing production at Limmatdruck l Zeiler would result in the risk of mass layoffs due to Swiss law, Schultz said. “AR Packaging carefully considers the negative impact for the approximately 150 employees potentially affected in Spreitenbach and will offer employment at other locations to the utmost extent feasible,” the statement read, adding that the service units, PAS Media and Brandkitchen, also located in Spreitenbach, are not explicitly impacted by the ongoing review.
AR Packaging generates net sales of over Euro 900 million ($980 million) annually. It has 5,500 employees and 28 factories in 13 countries, with its head office in Lund, Sweden.