Under the restructure plan, the folding carton converting operations at Reservoir will be relocated while the site’s sheeting division, stores and associated administration would remain operational.

Alex Commins, managing director of Colorpak says following a thorough review of the acquired assets, a rationalisation of the company’s manufacturing footprint had to take place.

He says, “The restructured configuration of the group’s manufacturing operations, with five sites in Australia and one in New Zealand, best positions Colorpak to integrate the CHH assets, maintain jobs across the group and consolidate its leadership position in the folding carton market.

“In the assessment of the group’s manufacturing assets, the Reservoir plant was found to be the least economically sustainable.”

Of the 99 employees affected by move, Colorpak expects to be able to preserve 66 jobs located at the Braeside and Mt Waverley sites. All employees who are unable to be redeployed within Colorpak will be paid out their full entitlements and assisted to find new employment elsewhere.

Commins continues, “The decision to relocate the folding carton converting operations at Reservoir to our other sites was a very difficult one, but in the end it was made in the interests of the longer term sustainability of the Colorpak group in Australia and New Zealand.”

Colorpak employs in excess of 770 people at manufacturing plants in Victoria, New South Wales and Auckland, NZ.

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