UCB (avenue Louise 326, B-1050 Brussels) has found a buyer for its flexible packaging business. Following a recent announcement that the group was seeking a strategic partner for this business, the Australian group Amcor Ltd (Southgate Tower East, 40 City Road, South Melbourne, Victoria 3205, Australia) has agreed to acquire 51% of it for BEF 5bn, with the right to buy the remaining 49% on July 1st 1997.

The flexible packaging division of UCB has been finding it tough in recent years with increased competition and pressure on margins. Although the division returned to profitability in 1995 following the closure of some loss making units in the UK and Hungary, the results were still not satisfactory. Turnover for 1995 was approximately BEF 10bn with an output of 50,000 t of product.

The companies acquired by Amcor will form part of its Containers Packaging division and be merged with its existing German-based flexible packaging business, Schroeder & Wagner (D-31737 Rinteln). The acquisition will give Amcor seven plants in Europe including UCB Transpac NV (Ottergemsesteenweg 801, B-9000 Gent), and UCB Helio Folien GmbH (D-41747 Viersen). UCB's flexible business is specialised in coextruded barrier films, gravure printing and laminating with output largely destined for the food industry. The business will be renamed Amcor Flexibles Europe and combined with the Containers Packaging division's existing film and flexible operations in Australia, US, Canada and China to create one of the largest flexible packaging producers globally with annual sales of approximately USD 1bn.

UCB will retain its PP and cellophane film activities based in the UK and Spain, which produced 85,000 t of product last year. This part of UCB's business has been more profitable and is expected to achieve a turnover in 1996 of BEF 10 bn.

READER SERVICE: UCB 1995 annual report (in English): PIE-No. 39461.