Converting

Amcor Flexibles is selling its Swedish AF Lund and British AF Baricol plants to Swedish private equity fund Accent Equity 2008, for an undisclosed sum.

The deal is part of the Australia-based group's restructuring programme to move more production to lower-cost economies in Southern and Eastern Europe.

The plants are primarily involved in the production of extruded materials predominately used in the fresh food, processed food and speciality segments.

They have combined sales of about 85m EUR (£68m) and employ 250 staff.

Amcor will also close AF Transflex, the UK customer service organisation, subject to consultation as a result of the sale.

Amcor Flexibles managing director Gerard Blatrix said: "The core of the Lund and Baricol business is no longer a good fit with our own market approach. This sale, along with previously announced restructuring and growth investments, will boost our drive towards accomplishing our strategy. It will also release funds for reinvestment in our identified growth areas."

In April 2007, Amcor Flexibles, which has 38 plants across 15 Europe countries, announced that its restructure would cost £40m but would add £20m a year to profits from 2009/10.

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