Nampak said yesterday that it was in a stronger position to navigate through challenging economic conditions in key markets.
The company announced that over the past two years, it had been engaged in a restructuring and reorganisation process that resulted in the sale of low margin businesses, a capital expansion programme, investments in energy efficiency, improved focus on operational excellence, cost reductions and improvements in procurement processes.
The company said a R2 billion note programme was established on March 1 that would enable Nampak to issue unlisted notes to raise financing.
Volume growth in beverage cans, gains from improved performance at glass and improved efficiencies from business improvement initiatives at DivFood would contribute positively to earnings.
Glass has turned around and is expected to deliver profits in line with the previously communicated guidance.
By Sandile Mchunu
The separation is expected to be completed by early Q3, following the receipt of all relevant approvals, including final Board approval. Nouryon intends to reduce its own debt with proceeds received from a planned external financing by Nobian.
Trinseo became a producer of the resin when it acquired Arkema’s PMMA business. It announced that it closed on the €1.14bn deal earlier this month.
As part of the EU’s Single-Use Plastic Directive (SUPD), it will become mandatory for caps and lids to remain attached to all beverage containers up to three liters in capacity from 2024.