Australian packaging company Amcor has announced that it will demerge its Australasia and Packaging Distribution (AAPD) glass and beverage can package business by the end of the year.
Amcor feels that it is crucial for each company to pursue its own strategy in the future.
Amcor CEO and managing director Ken MacKenzie said that to be productive, companies must remain focused on their product portfolio and end market.
"Although Amcor and AAPD are both packaging companies, they are actually very different in terms of product segments and geographic focus," he said.
"Amcor has global leadership positions in the flexibles and rigid plastics segments, while AAPD operates in the fibre, glass and beverage can packaging markets in Australasia and packaging distribution in North America and Australia."
The company has invested more than $1bn to improve the packaging unit's manufacturing capabilities over the past six years.
Plans are underway to implement the demerger of the business from the company's other operations through a capital reduction and scheme of arrangement.
Following the demerger, Graeme Liebelt will be Amcor chairman, while Ken MacKenzie will remain as managing director and CEO.
The existing AAPD president Nigel Garrard will be appointed as CEO to the new company, while Chris Roberts will become the new chairman.