Ontario Packaging

Abstract

Norm Phillips, chief executive officer of Ontario Packaging, was summing up a meeting on manufacturing investment proposals, which was intended to be the initial phase of a modernization programme within the company.

It looks to me that we are agreed. The process investment proposals before us are sound in principle, providing we can increase throughput from present levels by some 40 per cent, as indicated in the supporting details. I know this is no easy task, but all market segments are getting more difficult, and if we are to survive and maintain current performance levels, then this type of challenge will be illustrative of many future corporate decisions. From these initial discussions it appears that the extra volume is available, even though it places a greater emphasis on price. The new process will help, in part, to reduce costs, but higher volumes are essential if we are to maintain the group’s payback requirements and protect the above-average return on investment performance we have achieved in the past.