Nampak might sell glass unit to help it address its ‘skills gap’
Nampak has proposed selling its glass division, and says it is facing an unnamed new entrant in the South African beverage can market. The packaging group’s share price fell as much as 4.6% to R16.07 after it issued a trading update on Thursday. Nampak did not provide guidance on the change in interim earnings it expects to report on May 30 for the six months to end-March. It is inviting other packaging groups to bid for its glass division, "to ensure the long term profitability of glass and to address the operational skills gap", the trading update said. Nampak said its glass division had managed to overcome the severe obstacle of "very inconsistent" electricity supply by installing backup power, but was expected to contribute a loss to its interim results. The glass division’s problems included "insufficient technical skills", the statement said. Its metals division is bracing itself for the arrival of a new competitor. "Discussions with a major customer regarding the renewal of a...
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