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Amcor plc AMCR has entered into an agreement with Kolon Industries to co-develop and commercialize more sustainable polyester materials for selected applications in Amcor's flexible packaging business.
With the combination of Amcor's expertise in innovative packaging with Kolon’s high-polymer manufacturing technology, the companies strive to create more environmentally friendly packaging.
Amcor and Kolon to Develop New Technologies
Kolon is a leading South Korean chemical materials manufacturer. It is developing an advanced recycling process to produce new polyethylene terephthalate (PET) from post-consumer bottles, fibers and flexible packaging.
The collaboration will focus on researching and developing new technologies related to chemically recycled PET and polyethylene furanoate (PEF) materials, a polyester structure similar to PET.
Using chemically recycled PET aligns with Amcor’s commitment to integrating 30% post-consumer recycled materials in its global portfolio by 2030.
Also, Kolon’s PEF material will be sourced from 100% sustainable biomass and offer improved product protection. With its promise of lower product carbon footprint, PEF will also help Amcor in its journey to achieve net-zero ambitions by 2050.
Amcor’s Merger Agreement With Berry Global
A major development earlier this month was Amcor’s announcement that it had entered a definitive merger agreement with Berry Global Group, Inc. BERY
This deal boosts AMCR’s growth strategy by focusing its portfolio on faster-growing, better-margin categories. The deal will bring together two highly complementary businesses, combining Amcor's global flexibles and regional containers businesses with Berry Global's regional flexibles and global containers and closures businesses.
Customers will get a broader flexible film and converted film offering, as well as more sustainable solutions that promote circularity and reduce carbon footprint.
Amcor currently estimates $650 million in benefits from identified costs, growth and financial synergies by the end of the third year of closing. The companies expect an additional $280 million of one-time cash benefits from working capital efficiencies, which will offset around $280 million of expected pre-tax costs to achieve synergies.
Amcor’s Share Price Performance
In the past year, AMCR’s shares have gained 10.7% compared with the industry’s 23.1% growth.
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AMCR’s Zacks Rank & Stocks to Consider
Amcor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Industrial Products sector are Federal Signal Corporation FSS and RBC Bearings Incorporated RBC. Both these companies have a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.