AptarGroup, a leading supplier of packaging and distribution systems for the consumer goods markets, has announced a plan to optimize certain capacity in Europe. The group intends to transfer and consolidate the production capacity of twelve facilities serving the beauty, personal care, food, beverage, and consumer health care markets. As a consequence, two of the related facilities are expected to close, impacting approximately 170 employees.
According to Aptar, the reorganisation is required by increased production efficiencies. The total costs associated with the plan are estimated to be approximately 14 million euros (approximately 18 million US dollars using current exchange rates) while potential annual savings are estimated to be approximately 9 million euros (approximately 12 million US dollars using current exchange rates) beginning in late 2013.
“These actions are part of our long-term strategy intended to prepare us for future growth. We are benefiting from our continual investment in efficient production equipment and our ability to adapt to the changing needs of the markets we serve. In this instance, we looked at product lines, supply chains, and production capacity. We identified ways to streamline certain product technologies, reduce complexity for our people and our customers, and optimize our production footprint. This allows for a more efficient deployment of capital to support our growth in Europe,” commented Stephen Hagge, President and CEO.