Amcor Flexibles Asia Pacific is to build a multi-million dollar flexible packaging plant in the Philippines. The new plant will manufacture high performance packaging for a leading multinational consumer brand.
Managing director, Ken MacKenzie, confirmed to shareholders at Amcor's annual meeting last week, that the plant will open by the end of the 2015/16 financial year.
The investment builds on the existing strategic customer partnership and delivers direct in-country production thereby improving Amcor’s speed-to-market in the Filipino market.
"This will be a dedicated facility supported by a long-term supply agreement," he added. News of the new plant comes two months after Amcor announced plans to build a tobacco packaging plant in Indonesia.
MacKenzie told the meeting that Amcor was on track to lift earnings this financial year following a a solid start to 2014/15.
"...first quarter trading for Amcor has been broadly consistent with the expectations outlined at the full year results in August. Volumes in developed markets remain subdued and in emerging markets there continues to be good growth. Overall, it is anticipated that the benefits from recent acquisitions, growth in emerging markets, margin expansion through innovation and cost reduction initiatives will all combine to deliver another year of higher earnings."
Amcor's net profit lifted 25% in 2013/14 to $737 million - in part through acquisitions and growth in its packaging businesses in emerging markets.
According to MacKenzie, there are strong acquisition opportunities for the company that snared deals in China, Australia, India and Indonesia last financial year.
Ralf K. Wunderlich, president of Amcor Flexibles Asia Pacific stated, “Emerging Asia remains an important focus for Amcor Flexibles and with 38 plants in 8 countries today, our presence in the Asia Pacific region will continue to grow both organically and through acquisitions. Our growth is supported by a solid foundation of delivering high quality, safe and innovative packaging.”
