The company says it has undertaken the review in the face of excess Western European flexible packaging capacity, also citing substantial pressure on operating margins and growing investment by FMCG companies in "lower cost" Eastern Europe countries.
Graham James, Amcor Flexibles ceo, says: "Following a detailed review of both plants' prospects, we see no likelihood of any substantial improvement in operating results. We have examined a number of possible alternatives, but believe no viable solution exists to the financial and strategic problems facing these businesses.
'For AF Colodense, the UK market for gravure printed flexible packaging has been characterised by overcapacity, static demand and falling prices and, despite AF Colodense's excellent market reputation, it has proved impossible to reverse the declining results. AF Hochheim has been unable to generate adequate returns for some years, despite constant management and employee efforts to reduce operating costs."
James added that Amcor Flexibles would now be investing in its Halen, Belgium operation and Eastern European sites in Poland and Russia to "ensure the remaining Amcor Flexibles group is stronger and has a sustainable platform for growth".
AF Colodense near Bristol employs 175 and serves the confectionery and snackfood markets, while AF Hochheim has a 130-strong workforce and supplies confectionery, dry food and non-food customers.
Details of the proposed closures have yet to be decided, and until then, Amcor Flexibles says business will continue as normal.
