Sonoco has completed the sale of its rigid plastics blow molding operations to packaging giant Amcor for US$280m ($379m)
According to Jack Sanders, Sonoco president and chief executive officer, the company made the decision to sell the blow molding in order to help it focus on its consumer packaging portfolio and provide resources to further expand its targeted growth businesses, including flexible packaging, thermoforming plastics and temperature-assurance packaging for transporting pharmaceuticals, biologics and vaccines.
Sonoco’s rigid plastics blow molding operations include seven manufacturing facilities in the USA and Canada with 850 employees producing containers serving the personal care and food and beverage markets. The disposition of these operations is expected to impact annual sales by approximately US$205m
The reduction in sales is expected to impact Sonoco’s fourth quarter 2016 and full year 2017 sales. The company does not expect this disposition to notably affect operating margin percentages for the company’s consumer packaging segment.
