Page 6 - Packaging News Magazine July-Aug 2020
P. 6

   6 NEWS |
www.packagingnews.com.au | July-August 2020
 TOP CLICKS
1AUSTRALIAN GOVT COMMITS $190M TO BOOST RECYCLING INDUSTRY
The government is establishing a new recycling modernisation fund to drive a further $600m investment in Australia’s recycling capacity.
2(See story on p8.)
COVID-19 SHUTS DOWN AMCOR’S PORT MELBOURNE PLANT Amcor Flexibles shut down its Port Melbourne plant
after a worker tested positive for coronavirus. The facility was up and running after all
3employees were tested. PAPER, NOT FILM
– ECO-FRIENDLY CAN- PACKAGING SYSTEM KHS Group introduced a new paper technology that
is an alternative to shrink film or
wrap-around cartons for cans. 4(See story on p31.)
APCO ANNOUNCES 23 PRIORITY PROJECTS
In June, APCO announced its priority projects for the 2020-21 financial year.
They are intended to drive
progress towards the 2025 5National Packaging Targets.
APOLLO BAY DISTILLERY RECALLS NINE GIN PRODUCTS
Apollo Bay Distillery recalled the products after
learning some bottles had been filled with hand sanitiser due to incorrect labelling.
6Nobody was hurt.
QLM OPENS NEW AUSTRALIAN PRODUCTION CENTRE
QLM Label Makers opened a new production centre in
Brisbane. It is treble the size of its previous facility.
O-I ANZ sold to Visy for $932m
 TOP STORIES FROM THE PACKAGING NEWS WEBSITE PACKAGINGNEWS.COM.AU
THE deal that captured the atten- tion of the Australian and New Zealand FMCG producers and packaging industry back in late 2019 has been completed as pre- dicted. Visy will be the new owner of the glass manufactur- ing operations of O-I ANZ, and now a one-stop packaging shop.
Visy has bought O-I ANZ for US$652m ($932m). One of the biggest manufacturing acquisi- tions by an Australian owned business in Australian business history, the deal is expected to be completed by the end of July.
In previous reports published in PKN, industry analyst Paul Allen said: “With Orora recently completing a sale of its box divi- sion to the Nippon Paper-owned Australian Paper, Visy stands to become the sole local producer of cartons, cans, and bottles. It would make for a highly lever- ageable trifecta.”
This has now come to pass. Despite a hiatus in public announcements over recent months, insiders knew that O-I ANZ would be sold in 2020, Allen told PKN. It had to happen. Parent company O-I has mount- ing debt. At the end of 2019 it
owed some US$5.5bn after post- ing an annual loss of US$400m, on sales of US$6.6bn. O-I will use the sale proceeds to reduce its debt.
According to Allen, the sale will be completed in two parts: sale-leaseback of properties to a REIT for US$147m, and the sale of remaining business value to Visy for US$505m.
“For Visy, it is another mile- stone in the growth of its global packaging empire and positions them as the sole integrated sup- plier of cans, bottles, and car- tons across ANZ,” Allen said.
O-I is the largest manufac- turer of glass bottles and con- tainers in Australia-New Zealand with factories in Sydney, Melbourne, Brisbane, Adelaide and Auckland.
Visy – which is owned by executive chairman Anthony Pratt and his two sisters Heloise Waislitz and Fiona Geminder – is already one of the world’s larg- est privately owned recycling and packaging companies, with a huge presence in the US, where Pratt was recently named Fastmarkets RISI’s 2020 North American CEO of the Year.
In a statement issued by Visy following the announcement of the sale on 16 July, Pratt focused his commentary on the sustain- ability benefit of the acquisition, rather than the commercial impact on existing and future customers.
Pratt said, “Manufacturing has never been more important to Australia’s future... we will bring Visy’s sustainability cul- ture to O-I, aiming to increase recycled content (cullet) of glass bottles from 1/3 to 2/3... and employ 7200 people in well-pay- ing manufacturing jobs.”
“Local glass customers across ANZ will be relieved by the news. In recent months many have expressed a growing frus- tration at the falling levels of service and supply responsive- ness from a distracted O-I,” Allen said.
“Confirmation of the O-I sale is a good news story for Australian and New Zealand manufacturing,” Allen said. “It ends a nine-month process that will now ensure a competitive local glass industry remains intact, together with many thou- sands of local jobs.” ■
  $600m to Orora shareholders after fibre business sale
ASX-LISTED packaging giant Orora is passing on $600m to its shareholders after selling its Australasian fibre business to Nippon Paper for $1.7bn.
At an extraordinary general meeting, the company said shareholders would receive the payment through a special div- idend of $450m (37.3 cents per share), partially franked at a rate of 50 per cent. The remain- ing $150m will go to sharehold- ers through a cash payment of 12.4 cents per share.
At the meeting, Orora CEO
Orora CEO Brian Lowe
Brian Lowe said the sale of the Australasian fibre business brought in net proceeds after tax and costs of about $1.55bn.
He said completion of the sale
“represents compelling value for shareholders and enhances Orora’s strong balance sheet to deliver value creation through growth investment or long-term capital management from sur- plus sale proceeds and operat- ing cash flows.”
Orora’s independent non- executive director and chair- man Rob Sindel said Orora is operating now with little or no debt due to the proceed from the sale, “giving the company a very strong position in these unprecedented times”. ■
  



















































   4   5   6   7   8