Alcan Packaging rejigs European operations

Global packaging giant Alcan Packaging is to close three of its European operations and is considering the possible sale of two others.

The move is part of a proposed "realignment" of its European food, tobacco and beauty packaging portfolio, which will result in the loss of 350 jobs.

"This is necessary to create favourable conditions for future growth and expansion," said Alcan Packaging president and chief executive Christel Bories. "Maintaining competitiveness is the best insurance for long-term sustainable employment."

The factories earmarked for closure are the Mhltal and Roth food packaging sites in Germany and the group's Amsterdam tobacco packaging facility. In total the plants employ 258 staff.

The closures are blamed on customer delocalisation and over-capacity in the European packaging market.

There will also be job losses in the group's beauty packaging operations. The firm didn't reveal specifics but said the reorganisation across "several" countries could lead to 100 additional redundancies.

"We are very conscious of our responsibilities and we intend to manage the social and human consequences in a ... sensitive way," said Bories.

The group is also considering "potential divestment" of a beauty packaging plant in Provins, France and a food packaging factory in Zaragoza, Spain.

Alcan Packaging factfile
- Globally employs 34,000

- Sales 3.5bn ($6.1bn)

- Profit 377m

- Operates in 30 countries and has 181 facilities

- Other groups within Alcan are: Bauxite and Alumina; Primary Metal; and Engineered Products

Proposed closures
- Alcan Packaging Mhltal, Germany - 145 staff

- Alcan Packaging Roth, Germany - 66 staff

- Alcan Packaging Amsterdam - 47 staff