Grant Harrod will step down as CEO of Pro-Pac Packaging after just a year and a half in the top job, and John Cerini, former CEO of Integrated Packaging Group, is also quitting as a full-time executive.
Harrod will leave his position as soon as the company appoints a suitable replacement, he said at the company’s AGM. “In the meantime I will continue to lead the Company and oversee the implementation of its growth strategy.
“I would like to personally thank all our staff and management for their support and their hard work over the last year, and to thank our shareholders for their continued support,” he said.
Ahmed Fahour, chairman, thanked Harrod on behalf of the Board. “Grant will leave behind a high-calibre new management team who will ensure that we can achieve our full potential,” he said.
This new management team includes Rick Rostolis, CFO, who will oversee Pro-Pac’s integration and costs improvements programme; David Chin, chief commercial officer, who will implement the company’s working capital and inventory management programme; Kathleen Forbes, company secretary and general counsel; Andrew Harris, GM manufacturing, who will commence in January; and Charles Miller, chief information officer.
Pro-Pac this year suffered a $5.13m loss despite climbing revenues, blaming the drought as well as increased costs of raw materials. At the AGM, Harrod acknowledged the current year's earnings have not met expectations.
"We have underway a diversification strategy to reduce concentration risk on volatile markets like agriculture and raw material commodities such as resin, as we broaden the business to focus further up our customer’s value chain," he said. "These include our move into providing printing, lamination and other conversion capabilities, required by our customers in their primary packaging needs, and our focus on more resilient markets including packaged food and FMCG.
"The recent acquisitions of Perfection Packaging and Polypak, both value-add manufacturers, support this move."
Pro-Pac will retain executive search firm Egon Zehnder to find a replacement for Harrod.