Amcor picks insider for CEO as problems mount

MELBOURNE - Australia's Amcor, the world's top maker of plastic bottles, has picked an insider as its new chief to take the reins at a time when it faces soaring costs, weak European packaging demand and a box cartel investigation.

Ken MacKenzie, a 41-year-old Canadian who heads the Amcor Rentsch and Closures business based in Switzerland, will take on his new role as chief executive and managing director on July 1.

Amcor has been led by executive chairman Chris Roberts since December when it dumped chief executive Russell Jones amid allegations the company was involved in a corrugated box cartel that triggered investigations by regulators in Australia and New Zealand.

The probes are continuing, and Amcor and its main box rival, privately owned Visy Industries, do not know when the Australian Competition and Consumer Commission or its New Zealand counterpart will complete their work.

MacKenzie has worked for Amcor for 13 years, serving in all its major divisions. "He has had management experience in Europe, Australasia, the Americas and Asia and has an excellent track record in improving earnings and returns in these businesses," Roberts said.

Amcor warned last month that it would be difficult to meet its 20 per cent growth target over the two years to 2006 because of rising resin costs and increasing difficulty in passing higher costs through to customers.

Its shares have fallen by 13 per cent in the year to date.

- REUTERS