Packaging papers manufacturer in Australia PaperlinX is set to implement restructuring and cost reduction initiatives in its businesses in the UK, in a bid to cater to the ongoing depressed trading conditions in Europe.
The company will invest $3m to implement the restructuring and the program is expected to cost neutral in financial year 2013 as the benefits are realized over the balance of the financial year.
PaperlinX is also taking similar action to readjust the cost base of its businesses in continental Europe to go with current demand and plans to consider asset rationalization if restructuring costs cannot bring any advantages.
PaperlinX chairman Michael Barker said the new restructuring plan demonstrates the immediate priorities of the company.
"We will continue to work to strengthen our already profitable businesses in Australia, New Zealand, Asia and Canada and direct the future of the Company towards a diversified range of products with growth ahead of them," Barker said.