MOOSCOW (MRC) -- Amcor plans to shut down its flexible packages plant in Santiago Norte, Chile, on the back of a “difficult industrial and economic” environment, the company said.
A spokesperson for the company said Amcor’s capsule business in Chile was not affected by the announcement. “Despite our continued efforts, the Santiago Norte flexibles plant has struggled to maintain viable operations in a difficult industrial and economic environment,” said the Amcor spokesperson.
“The plant will continue to operate until 30 June. It has been a very difficult decision and we are doing everything we can to support our flexible packaging team and our customers through the process." Earlier in April, the IMF forecast Chile’s GDP would decrease by 1% in 2023, although that was an improvement from its prior forecast of minus 1.5%.
The country’s economy has been slowing down in past quarters, although GDP in 2022 grew by 2.4% overall. Growth, however, came mostly from services sectors, while chemicals and the wider manufacturing industries posted declines in output.
Melbourne-headquartered Amcor produces flexible packaging, rigid containers, specialty cartons, and closures, and serves several industries such food, beverage, pharmaceutical, medical-device, home, and personal care, among others.
According to the company’s website, it posted USD15bn in sales in 2022, employs 44,000 workers, and operates 220 sites in 43 countries.
Polymers widely used in the packaging sector include polyethylene (PE) and polypropylene (PP).
“The polymer industry, to be honest, really has to get their act together because otherwise they will be regulated out of the market by regulators or by the market itself,” said Gerald Rebitzer, speaking to delegates at the conference.
We remind, Amcor plc announced its Amcor Australia & New Zealand (ANZ) business has signed a Memorandum of Understanding (MoU) with Australian-based technology pioneers, Licella Holdings Ltd (Licella), to invest in one of Australia’s first plastic advanced recycling facilities. As one of the first advanced recycling facilities to be built in Australia, the agreement supports Amcor and Licella’s commitment to creating a local circular economy for soft plastics in Australia and helps advance Amcor’s target to achieve 30% recycled content across its portfolio by 2030.