PACKAGING: Nampak Sells Some Flexpak Assets
Recent Western Cape Business News
NAMPAK Flexible, a division of packaging company Nampak has sold certain assets of its Flexpak business to Astrapak.
The Flexpak business is focused on the manufacture of bread bags, stretch film, shrink-wrap and other forms of plastic film.
Following a strategic review, Nampak Flexible decided to exit this business by selling certain assets and relocating others into its existing operations.
Previously, the division committed significant resources to improving Flexpak and growing its footprint in the bread bags, stretch film and shrink-wrap markets. Despite these steps, margins remained under pressure and Nampak Flexible was unable to achieve the level of profitability required.
Consultations are underway with all stakeholders to ensure that the process runs smoothly and that supplies to customers are unaffected, a spokesman says.
The move is in line with the Nampak group’s communicated strategy of either turning around or exiting non-core and non-performing businesses.
A due diligence exercise by Astrapak has been completed, but the transaction remains subject to Competition Commission approvals.
Nampak Flexible continues to operate three Flexible plants in Ndabeni, Pinetown and Port Elizabeth, as well as its laminated and coated products and foam businesses.
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