AptarGroup to close two facilities as part of European optimisation plan
Closure will impact around 170 employees
AptarGroup, the supplier of dispensing systems for the consumer goods market including fragrance, cosmetics and personal care, has announced plans to close two of its European facilities.
Due to increased production efficiencies and to place the company in a better position for future growth in Europe, the optimisation plans will see the transfer and consolidation of production capacity involving 12 facilities. Two of these facilities are expected to close, affecting approximately 170 employees.
The total costs associated with the plan are estimated to be approximately €14m, or approximately $18m using current exchange rates, of which approximately €4m relates to non-cash expenses. Annual savings are estimated to be approximately €9m beginning in late 2013.
Stephen Hagge, president and ceo, said: “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 optimise our production footprint. This allows for a more efficient deployment of capital to support our growth in Europe.”
