Amcor announces 300 redundancies, big jump in profit

Packaging company Amcor will cut 300 jobs at three sites in Victoria and Queensland, with the high Australian dollar and high costs blamed.

"Amcor would take steps to realign its Australian operations to the challenging conditions facing all Australian manufacturers, resulting in approximately 300 redundancies," said Amcor’s Australasian managing director Nigel Garrod in a statement reported by AAP.

"The continued strength of the Australian dollar, significantly increasing cost pressures, including in areas such as energy costs, have made it impossible for these sites to remain competitive.”

The company’s Petrie cartonboard mill in Queensland and Thomastown beverage closures facility would shut before the year’s end. The Age reports that Thomastown’s factory’s output would be outsourced elsewhere, and 17 jobs would be cut at a Laverton North factory.

Meanwhile, Amcor has said that it expects to deliver a record profit for the financial year, and has not ruled out making acquisitions.

"As long as they're on strategy, as long as they're in our core market segments, we're a bit agnostic as to which geography we go after," CEO Ken MacKenzie told The Australian.

AAP reports that Amcor announced  a profit of $238.3 million  for the half-year to December, an increase in profits of 16.3 per cent compared to the corresponding period a year before.
 

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