Converting

Amcor Flexibles is to cut more than 10% of its European workforce in a major restructuring.

The Australia-based group is to cut 900 of its 7,600 jobs as it moves more production to lower-cost economies in Southern and Eastern Europe.

It is unclear at this stage how the plans will affect the group’s UK operations, but Amcor said the restructure would lead to a “significant reduction” in the number of its sites with flexographic or gravure printing.

Amcor will also build a new £18m (€26m) plant in Poland to serve PepsiCo’s snack food business in Eastern Europe.

The group, which has 38 plants across 15 Europe countries, said the proposals would cost £40m, but would add £20m a year to profits from 2009/10.

It will also spend £27m over a two-year period on new equipment or relocation of equipment to plants that survive the restructuring.

Chief executive Ken Mackenzie (pictured) said: “With an improved operational focus and clearer strategic direction, the business will be well positioned to deliver solid growth and strong returns.”