The half-yearly results showed a 14% rise in underlying profit and a 19% share of international revenue for Australasia.
The Australasia and Packaging Distribution division increased its sales by 0.6% to $1.5 billion, although profits fell 10% to $90 million.
Chief executive Ken MacKenzie described Amcor’s worldwide performance as “particularly pleasing” given the weak global economy and high Australian dollar, while he called the Australasia and Packaging result “solid”.
Amcor’s executive general manager for corporate affairs, John Murray, told ProPrint the company was pleased with Australasia’s contribution – and that the new recycled paper mill would further boost earnings.
The Botany mill will employ about 100 people and will be commissioned in July as three old machines are phased out. The new machine will cost $550 million, although the net cost is expected to drop to $280 million once land sales are completed.
While there will be no increase in capacity, the company is forecasting savings of $40 million per annum by year three once full production is reached.
The “world class machine” will produce a broader range of lightweight papers and higher quality recycled paper for use in the corrugated box market, according to Amcor.
The company also noted its “significantly improved environmental impact” – a 34% reduction in energy usage, 26% reduction in water usage and a 75% reduction in waste to landfill.
Amcor’s results also showed a “strong turnaround” in carton earnings and no change in corrugated volumes.
Murray said Amcor was managing rising energy and labour costs to ensure it remained competitive in the local corrugated box market, although selling prices needed to increase.
Meanwhile, the Australian Manufacturing Workers Union has told the Australian Competition and Consumer Commission that Amcor’s proposed merger with flexible packaging company Aperio could cost hundreds of jobs.
“We see the move by Amcor as one of eliminating a competitor rather than the acquisition of an asset to benefit the market,” said national print division secretary Lorraine Cassin.
“Amcor has ample capacity in flexible packaging having increased capacity in Asia. We do not see that the acquisition of Aperio would lead to increased or more effective competition resulting in lower prices for consumers or business, or better or more timely delivery of services.”
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