Sonoco consolidates metal and paper packaging under new global structure
Key takeaways
- Sonoco is consolidating its metal packaging and rigid paper containers businesses under one structure, divided into Consumer Packaging EMEA/APAC and the Americas.
- The company appointed senior leadership for Consumer Packaging EMEA/APAC and Consumer Packaging Americas.
- The move follows portfolio changes, including the sale of ThermoSafe, Thermoformed and Flexibles Packaging, and an investment to expand production in adhesives and sealants.
Sonoco Products Company is uniting its metal packaging and rigid paper containers businesses under one structure based on two geographies: Consumer Packaging EMEA/APAC and the Americas.
The company also announced new senior leadership for Consumer Packaging EMEA/APAC and the Americas.
Howard Coker, president and CEO at Sonoco, says: “The new structure will create a much simpler and more efficient operating model that will also allow our teams to be agnostic about the substrates we offer to our customers. This integrated structure — driven geographically — will lead to further innovation, collaboration, and growth opportunities.”
Changes and expansions
Leadership changes include Seán Cairns, named as president, Consumer Packaging, EMEA/APAC, and Ernest Haynes, named as president, Consumer Packaging, Americas. Rodger Fuller will continue as Sonoco’s chief operating officer and step back from his temporary role as Interim CEO of Metal Packaging EMEA.
This month, Sonoco Products Company finalized the sale of its ThermoSafe business unit to Arsenal Capital Partners. The private equity investment firm purchased the temperature assurance technology division for US$725 million.
Earlier this year, Sonoco completed the sale of its Thermoformed and Flexibles Packaging business to Toppan for a purchase price of approximately US$1.8 billion.
In July, Sonoco announced a US$30 million capital investment to expand its production capacity in the growing adhesives and sealants market. This investment includes the enhancement of existing production lines and the installation of new lines.
The strategic initiative is said to add 100 million additional units of annual capacity, enabling the company to meet growing market demands while enhancing supply security. Sonoco plans to distribute its expanded production capacity across three facilities.
