AGI-Shorewood CEO talks merger, business

Packaging companies AGI World and Shorewood Packaging merged and officially became AGI-Shorewood earlier this month. The company states it is now one of the largest global specialty packaging businesses with operations in North America, Europe, Asia, and Latin America. Prior to the merger, Ukropina served as president of Shorewood Packaging.

He said the combination of the two companies produces highly complementary offerings.

"For instance, where AGI is dominant in Europe, Shorewood has a very strong position in North America, Latin America, and Asia. Where AGI is a leader in plastic packaging, Shorewood is a leader in tobacco and consumer products packaging," he said. "And the merger provides AGI with instant diversification away from our core entertainment packaging business, as well as a presence in the fast-growing markets of Latin America and Asia, where we had none previously."

The company now has five plastic injection molding operations in the U.S., UK, Germany, and Poland. Ukropina said he sees injection molding as an area that can possibly grow for the company.

"There's less capacity in the wake of the global financial crisis, which means there's great potential for more work for strong injection molding vendors like AGI-Shorewood," he said. "Meanwhile, demand for injection molding and packaging continues to grow in the medical and packaged-food markets."

AGI-Shorewood's key consumer-packaging segments include entertainment and media, tobacco, beauty and personal care, cosmetics and fragrance, healthcare and pharmaceuticals, consumer electronics, golf, confectionary and specialty foods, beverages, and specialty gravure.

AGI-Shorewood also announced plans for a major expansion of its operation in Guangzhou, China, following the completion of the closing of Shorewood's Chinese businesses later this month.

With this transaction and following the closing on Shorewood Packaging's Chinese businesses later this month, the company will employ nearly 4,000 people worldwide, operating 24 manufacturing facilities in North America, Europe, Asia, and Latin America.

"Merging AGI and Shorewood allows us to provide our customers with a more competitive and comprehensive offering of packaging solutions," Ukropina said. "Over the last six months I've visited many of our facilities, and the employees I spoke with agree our expanded reach and capabilities are unparalleled."