Sluggish Australian beer and wine market could see job cuts for glass manufacturer

Owens-Illinois (OI) Australian employees could soon be out of work, as the US-based company reassesses its business amid slower beer and wine markets.

The company’s second quarter report revealed the slowdown of beer and wine sales in Australia could force the company to close local plants and offering redundancies.

''Given the continued sluggishness of the Australian wine and beer markets, as well as the fact that we are still negotiating major customer and union contracts, further capacity actions may be necessary,” O-I Glass chief executive Al Stroucken said.

''To date, we have spent $25 million of the anticipated $50 million restructuring program in Australia.

“Additional activity to complete this program will be managed to ensure that further spending is offset by cost savings so that our cash-flow goals are achieved.''

O-I  Australia spokesperson Simone Stella told Manufacturers' Monthly sister publication Food Magazine that the company is always reviewing the viability of its operations.

“We have no footprint realignment announcements to make at this point in time,” Stella said.

“As confirmed by our Chairman and CEO Al Stroucken, Australia's beer and wine markets remain weak.

“As such, we are continuing to review and reassess our business to ensure it is best matched to market conditions and able to serve our customers most effectively.

“A sensible and successful business must constantly review its operations and that's currently what we're doing. “

The majority of companies are looking abroad for cheaper packaging alternatives.

 

[This article first appeared in Food Magazine, also published by Reed Business Information.]

 

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