South African diversified packaging group Nampak is selling its struggling glass business to ensure the long-term profitability of the business and address an operational skills gap, it said on Thursday.
Nampak has approached potential buyers for the division, which suffered a 40% drop in trading profit in the year to September 30.
“Exploratory discussions have been held with a number of strategic players with a formal corporate finance disposal process currently in progress,” the company said.
In November Nampak said it was recruiting internationally to bolster its glass-making skills and appointed specialists consultants to address production challenges and an operational skills gap.
“Progress, however, has not been as fast as desired and this business is expected to make a loss for the half year to March 2018 due to lower than targeted operational efficiencies resulting from insufficient technical skills,” it said on Thursday.
Nampak’s share price as down 2.1% at 16.50 rand by 1055 GMT.