Bemis outlines restructuring and cost savings

Headquartered in Neenah, Wisconsin, Bemis has a strong technical base in polymer chemistry, film extrusion, coating and laminating, printing and converting. It said the planned actions will ‘further position the company for long-term success’, with these initiatives to be implemented ‘while maintaining the high quality products, best-in-class service, and culture of respect and innovation consistent with Bemis’ standards’, according to the company.

The planned actions include optimizing its manufacturing capacity, with definitive plans to close two manufacturing facilities. The company will initiate the closing of one of these facilities in 2017 and the other in 2018, with work performed at these facilities to be transferred to other Bemis locations.

Bemis said it is also to reduce its administrative support cost structure to align with the current business environment. These activities will result in a reduction of approximately 300 positions, or five percent of the company’s global administrative workforce, over the next three years.

William F. Austen, Bemis Company president and CEO, said: ‘Improving the performance of our US Packaging business is a key priority in creating value for our shareholders. During April, we began a review to align our US manufacturing and administrative cost structures with the demands of our customer base to better position the company in the current environment and for its long-term success.

‘Given the challenges in the Brazilian economic environment, we have also expanded the scope of our review to include our entire global business. We are targeting a total company cost savings plan of 55-60 million USD as we create a more agile, streamlined and efficient business that is well-positioned for the long-term.’

Austen added: ‘We are focused on improving our business and further positioning ourselves for long-term profitable success. As we begin to implement the first steps of this cost savings plan in 2017, we will also continue our comprehensive review to finalize the remaining cost savings, to outline future capital spending, to explore ways to offset headwinds of the current economic environment in Brazil, and to reshape our go-to-market efforts to align with the evolving US packaged food landscape.

‘The strong foundational elements of Bemis Company remain unchanged. We are committed to our dividend program and returning free cash flow to our shareholders, to developing opportunities for organic and inorganic growth, and to providing an attractive, long-term investment for our shareholders.’