Packing company Amcor splits the business PACKAGING company Amcor says the time is right to split its Australasia and Packaging Distribution business from the group's other operations. Amcor said the demerger of the business into a separate listed company would enable the parent group and the spin-off to pursue their own strategies. The spin-off company will be listed on the Australian Securities Exchange Amcor will focus on making flexible and rigid plastic packaging and tobacco packaging mostly for overseas markets after the deal. Australasia and Packaging Distribution will focus on the fibre, glass and beverage can packaging markets in the region, along with packaging distribution in North America and Australia. Its president Nigel Garrad will be chief executive. Current Amcor chairman Chris Roberts will be the chairman of the spin-off company, while Amcor director Graeme Liebelt will be appointed chairman of the "new Amcor." Amcor chief Ken MacKenzie said while Melbourne-based Amcor and the spin-off were both packaging companies, "they are actually very different in terms of product segments and geographic focus." Mr MacKenzie said Amcor had been transforming its operations over the past eight years. It had abandoned some market segments, closed various manufacturing facilities, cut the size of the workforce and expanded into other areas, he said. More than $1 billion had been invested in Australasia and Packaging Distribution over the past four years to support future profit growth, Mr MacKenzie said. Australasia and Packaging Distribution has 26 large-scale plants employing about 5000 workers. It made a pre-tax loss of $36.8 million in six months to last December, including a $119.6 million charge from restructuring expenses. The demerger, which needs shareholder approval, is expected to be completed by December. Mr MacKenzie said details of the division's performance in the second half of the financial year would be revealed when Amcor released its full-year results later this month. Shares in Amcor closed up 1.42 per cent today at $10.74.