Bemis Company, Inc.to close four facilities in Latin America by the middle of 2017. A portion of these closures reflect the Company’s synergy plan related to the recent Emplal acquisition to optimize its footprint.
Total restructuring costs for this program are estimated to be in the range of $28 to $30 million (at current exchange rates), $13.3 million of which was booked during the 2Q 2016. Cost reductions from the program are expected to reach the full run rate of approximately $16 million (at current exchange rates) annually during 2018.
William F. Austen, Bemis Company's President and CEO, said, “Our decision to consolidate facilities in Latin America reflects our desire to be good stewards of our expanded resources. The modern and efficient facilities we acquired with the Emplal acquisition provide the capacity that allows us to move some production from our legacy locations. As the economic environment in Latin America continues to challenge consumers, as well as our customers in the region, the benefits of this consolidation will help offset those headwinds and will keep us on track in achieving our long-term margin targets in the Global Packaging segment.”
Bemis Company, Inc. is a major supplier of flexible packaging used by leading food, consumer products, healthcare, and other companies worldwide.
