Dear Mauser Packaging Solutions Colleagues:
Production and sales volumes at Mauser have deteriorated in the second half of 2022. While our sales team is working extremely hard to secure new business, we are currently faced with two hard truths: we cannot predict how soon demand will return, and demand for product type or regions may be different when demand returns. The continuation of a challenging operating environment, including a contracting global economy, unprecedented inflation, and ongoing supply chain challenges, has led to concerns about our customer’s requirements for containers as we move into 2023.
We must proactively react to these changing market conditions. As a result, we have begun the process of workforce reductions across some of our operations. In addition, all open salaried positions are frozen until they can be reassessed. Business travel is strongly discouraged. Only senior leadership approved travel that is essential to the efficient operation of the business is allowed. We are also significantly reducing discretionary spending items and have accelerated our EIP actions, particularly in procurement, to address the soft market environment. Our aggressive cost reduction measures and more accelerated EIP actions will continue until business conditions change. Collaboration amongst business units and corporate functions to drive EIP with speed will result in calculated risks to combat volume headwinds in 2023. These actions may create inconveniences and additional pressures on all of us but are necessary to ensure we are doing the right thing for the business, both in the short term and long term.
I remain committed to the Billion Dollar Plan and building our long-term investments through our team, growth through innovation, infrastructure and assets, and aggressive sustainability goals. These actions and investments include the following:
- Our new capacity expansions in China, Turkey, and Brazil, where we are selling niche products for customers and market segments that are unique and not commoditized.
- Expansion in Hybrid capacity at our Garland, Chicago and York facilities.
- New expansions and capacity additions in North Wales and Anniston.
- Our training programs for our supervisors and plant managers.
- Our investment in upgrading our facilities and making them a better place for you all to work.
- And finally, our key focus on investments in Safety, Quality, Sustainability and PCR which, as you know, remain unchanged and are foundations of our business and long-term growth plan.
To further support our Billion Dollar Plan, I ask all employees to commit and embrace the EIP and SIP programs. EIP and SIP need to be a state of mind that is present in everything that we do, the foundation for optimizing efficiency and positioning the company for growth. It is through the success of our EIP and SIP programs that we can and will make further additional investments that will benefit us all.
As 2022 draws to a close, I want to take the opportunity to look back on a year that turned out much differently than anyone could have imagined. I am confident that by remaining committed to our core values and operational foundations, we will navigate through even the toughest of times. Our employees are the reason that we have created a great company, and I personally thank you all for what you bring to our customers, the plants, and our offices every day.
As we approach the end of this year, I hope you enjoy time with family and friends and have a safe and happy holiday. I look forward to leading you all going forward in what will be a challenging, unconventional, and dynamic 2023.
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