Page 34 - Plastics News October 2020

Sonoco agrees to sell Europe contract packaging Nigerian government bans alcohol sale in
business PET/PETE and glass bottles
iversified packaging company Sonoco has agreed
he Government of Nigeria has banned the sale of
Dto divest its Europe contract packaging
Talcohol in polyethylene terephthalate (PET or
business for $120m in cash. The sale is part of the
PETE) and glass bottles. The decision comes two days
company's strategy to streamline operational
structure and further develop its core Consumer and after a warning was issued by the National Agency for
Industrial packaging businesses. The deal is Food and Drug Administration and Control (NAFDAC) on
dependent on meeting standard closing conditions and alcohol consumption in sachet. This public health
is expected to close in the fourth quarter of this year. caution was to help Nigerians avoid consuming
Sonoco is expected to
alcoholic products that are unregistered. The NAFDAC
use the net proceeds
said in a statement: “These concerns relate to negative
from the sale to lower
short-term debt and effects of irresponsible alcohol consumption on public
strengthen its liquidity health and on the safety and security of the public,
position. Wisconsin- alcohol being a toxic and psychoactive substance with
b a s e d c o n t r a c t dependence producing properties. “The Federal
p a c k a g i n g a n d
Ministry of Health is concerned about the high
m a n u f a c t u r i n g
incidence of substance and alcohol abuse in the country
firm Prairie Industries
and NAFDAC, being the competent authority and
is acquiring Sonoco
Poland Packaging working with relevant stakeholders, is increasing
Services business. The efforts to stem this. “With regard to alcohol, major
business employs
nearly 2,600 employees and operates six contract
packaging facilities in three locations and a warehouse
all in Poland. A part of Sonoco's Display and Packaging
segment, it specialises in providing full-service
custom packaging and supply chain management
solutions. Sonoco President and chief executive officer
Howard Coker said: “Since opening our Europe
contract packaging business with a single customer 20
years ago, we have built this business to serve some of
the best known global consumer product brands
supplying consumers in more than 40 countries in
Europe, the Middle East, Africa and Asia. “I want to
thank our dedicated management team and employees
in our contract packaging operations in Poland for their
stakeholders have been engaged at the highest level
contributions to Sonoco and wish them the best as part
and are already sensitised to the issue. “To this end,
of the Halifax family of companies.”
several interventions jointly agreed upon by major
Scott Lamb, Chief Executive Officer of Prairie
stakeholders are being undertaken and as a first step,
Industries Holdings, welcomed the Sonoco Europe
no new products in sachet and small volume PET or glass
contract packaging team to the Prairie organization
bottles above 30% ABV will be registered by NAFDAC.
saying, “the team's outstanding reputation for quality
service in Europe, along with a portfolio of world-class ”Furthermore, manufacturers of alcohol in sachets and
facilities, will position the combined business as a small volume PET and glass bottles are required to
global contract packaging leader.” lower capacity by 50% of levels before January 2020.

October 2020 34 Plastics News