The company, which currently controls 38 plants throughout Europe and Russia, plans to shift its presence further towards the lower cost regions of Southern and Eastern Europe in a €60m restructuring programme. The company did not reveal which plants it wants to exit.

The company had previously said it would exit polyethylene terephthalate (PET) packaging production in Western Europe.

For processors the overall strategy in the region could mean they will have to source their packaging from further afield. It could also be a sign that Amcor is attempting to hold down packaging costs, which have risen dramatically over the past two years.

Companies like Amcor are under increasing pressure to reduce operational costs in the increasingly competitive food and drinks packaging market.

Amcor plans to sell off sites with little strategic value to it overall operations, for a smaller more focused production base for its flexible packaging products.

It was this tough market that the group blamed for a 13 per cent fall in global profits to €110m from €127m during the second half of last year.

The group announced the cuts, which will be made to both its workforce and production capabilities within Western Europe, as part of plans to reduce costs by €30m by 2010.

To aid this reconstruction, €40m will be invested in the purchase and transportation of production equipment to allow the groups remaining plants to meet any increased demand.

The restructuring plans also include the construction of a €26m plant in Poland designed to produce packaging for PepsiCo's expanding snack operations in Eastern Europe.

Ken MacKenzie, Amcor's managing director, said that the strategy would be vital in turning around the company's flexible packaging performance within the region.

"This repositioning programme delivers a wide range of improvements and better aligns the business to future market trends and customer needs," he stated. "With this improved operational focus and clearer strategic direction, the business will be well positioned to deliver solid growth and strong returns."

In February the company announced that Western Europe was expected to account for just 20 per cent of its sales in 2009, from 32 per cent in 2005.

Conversely, in emerging markets like Eastern Europe, the company forecasts that sales will increase to around 20 per cent of revenues from 12 per cent over the same time frame.

With markets like Poland offering a lower cost alternative for production of its goods, Eastern Europe will be an engine of growth for the group, MacKenzie added.

The company has conceded that although the markets for products such as PET packaging in Western Europe were strong, it could not meet the required investment needed in the sector.

To better support its international expansion Amocor said it would divest its European PET production, which produces bottled goods for the carbonated beverage industry.

Along with shake-ups to its European production, Amcor announced it would also be closing four of its fiber production plants in Australia to improve performance of its operations within the sector.

The sites which supply carton and paper based packaging predominantly for the beverage and fast food industries will be closed as part restructuring measures designed to bring it in line with the growing demand for Amcor's flexible and rigid packaging products.