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Amcor to spin off new company holding its US, Australasian packaging

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Amcor to spin off new company holding its US, Australasian packaging

August 09, 2013 - 09:21

SAN FRANCISCO, Aug. 9, 2013 (PPI Pulp & Paper Week) -Amcor has announced its intention to separate its Australasian and North American packaging business from its now more dominant international flexible and rigid plastics business.

After the demerger, the Australasia and Packaging Distribution (AAPD) business will be an independent company traded on the Australian stock exchange, and will include its former operations in containerboard, corrugated boxes, glass, and beverage can packaging operations. The spinoff is expected to be completed later this year.

The spun-off company is expected to be owned by Amcor shareholders.

In North America, the newly formed company will include a total of about 13 Amcor Sunclipse corrugated box plants, including Corru-Kraft's two sheet feeder plants in Buena Park and Fullerton, CA. The company operates another sheet feeder in Alhambra, CA, and about 10 sheet plants mostly in California, along with one plant each in Illinois and Tennessee.

Through its Landsburg division, AAPD will also distribute stock and custom packaging, and janitorial supplies through about 40 locations in the US and Mexico as well as Europe and Asia.

Amcor has been undergoing a major restructuring of its containerboard and boxboard operations in Australia. Late last year, the company started up the new recycled containerboard machine No. 9 (BM 9) that is to eventually reach 400,000 tonnes/yr in capacity at its Botany Bay mill near Sydney in New South Wales, replacing two existing machines, BMs 7 and 8, at the site with combined capacity of 260,000 tonnes/yr.

The company also shut its 120,000 tonnes/yr Alphington containerboard mill in Melbourne, Victoria, at the end of 2012 and plans to shut a 140,000 tonnes/yr recycled boxboard mill in Petrie, Queensland, by the end of this year.