In an interview with PrintWeek Garnish, who was recently appointed president of the BPIF, said that currently around 90% of AGI-Shorewood’s revenue comes from producing media packaging and that the company aims to diversify into areas such as the beauty, fragrance and personal care packaging markets.

He added: "In order to facilitate our work in new markets we would be interested in acquiring a business that already has a presence in these sectors."

The European division of AGI-Shorewood is currently developing a five-year capital plan, Garnish said, which will include proposals to invest in business by building a new facility - likely to be based in central Europe - and by upgrading its equipment to more modern technology.

Print and packaging M&A expert Nicholas Mockett, of Moorgate Capital, said AGI-Shorewood's strategy to diversify into non-media packaging was a logical step. "Although around 70% of albums purchased last year were on CD this is likely to diminish over time," he added.

"AGI already has a footprint in CEE and these countries have seen investment by FMCG manufacturers in recent years. No doubt demand for products such as health and beauty will grow as incomes rise, therefore increasing demand for the packaging.

"There will be acquisition targets to acquire but in some parts of the CEE new capacity may be necessary - or perhaps could be transferred from legacy media packaging businesses."

Meanwhile, the consolidation of AGI-Shorewood's combined operations following the merger of AGI World and Shorewood Packaging in January, has led to the proposed closure of its facility in Ebbw Vale, South Wales.

Garnish said: "We have begun consultation over the possible closure of the Ebbw Vale facility which has been losing money for a number of years and the plant configuration is not ideal.

"From an economic perspective we feel we are unable to keep it going unless someone comes up with something we haven't thought of, hence the consultation to see if we can find an alternative solution."

He added that the company has no plans to close any other facilities but that some management reorganisation is underway as a result of the merger.

Asked about his vision for the BPIF, Garnish said: "I wanted to take up the role of president because when I started out in print at the age of 15 the BPIF was a pillar of strength to the industry.

"I think going forward the BPIF should help those businesses in the print sector – the vast majority of which are small or medium size – that cannot afford to pay for HR specialists, management consultants or health and safety specialists. I think offering services like this well help the organisation to grow its membership."