Industry News, Printers News

Bemis Company Announces Actions to Reduce Cost Structure

Annual savings run rate targeted at $55 to $60 million.

Bemis Company, Inc. announced its planned actions in a restructuring and cost savings program to improve efficiency and profitability that further positions the company for long-term success.
 
“Improving the performance of our U.S. Packaging business is a key priority in creating value for our shareholders,” said William F. Austen, Bemis Company’s president and CEO. “During April, we began a review to align our U.S. 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. We are targeting a total company cost savings plan of $55 to $60 million as we create a more agile, streamlined, and efficient business that is well-positioned for the long-term.”
 
Actions include:
• Optimizing manufacturing capacity. The company has definitive plans to close two manufacturing facilities; work performed at these facilities will be transferred to other Bemis locations. The company will initiate the closing of one of these facilities in 2017 and the other in 2018.
 
• Reducing SG&A Cost Structure. The company will 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 5% of the global administrative workforce, over the next three years.

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