Colorpak to shift folding carton converting operations at Reservoir, Australia, to other sites under restructure plan, to cut 33 jobs

MELBOURNE, Australia , August 12, 2011 (press release) – As part of the integration of recently acquired Carter Hold Harvey folding carton assets, Colorpak today announced it would shift part of its Reservoir operations to its other Melbourne plants, effective the end of November 2011.

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.

Managing Director Alex Commins said that following a thorough review of the acquired assets, a rationalization of the company’s manufacturing footprint had to take place.

“The restructuring 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 ninety nine (99) employees affected by this decision, we expect to be able to preserve around sixty-six (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.

“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,” Mr Commins said.

Colorpak employs in excess of 770 people at manufacturing plants in Victoria, New South Wales and Auckland, NZ. It is the leading Australasian folding carton manufacturer and is committed to the sustainable development of industry in its local markets.

About Colorpak – The Colorpak business dates back to the 1920s and has grown to become a prominent participant in the $620m folding carton segment of the paper and board packaging industry in Australia and New Zealand. It has grown from 36 people and $1.5m turnover in 1985 to over 770 people and a forecast turnover in excess of $200m in 2012. Over the past decade, Colorpak has been the most consistently rated No.1 folding carton supplier for reliable delivery and service with the highest quality standards by BIS Shrapnel Global business research and forecasting, It has operations in Victoria, NSW and Auckland, NZ

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