HUHTAMÄKI OYJ PRESS RELEASE 5.3.2024 AT 9:00 EET
Huhtamaki to consolidate its production footprint in China
Huhtamaki is planning to consolidate the production footprint in China in the
Fiber Foodservice Europe-Asia-Oceania segment and will close its production
sites in Tianjin and Shanghai by the end of Q2 2024. The production will be
transferred to the manufacturing site in Guangzhou. Additionally, Huhtamaki
continues production at the site in Xuzhou. The decision affects 154 employees
in the two sites. Huhtamaki will support the impacted employees and provide
assistance in finding new employment.
The aim of the consolidation is to optimize the manufacturing footprint, improve
the competitiveness and strengthen the foundation for future growth in the
region. The announced change is part of Huhtamaki's program to accelerate
strategy implementation, announced in November 2023, expected to materially
support the profitability of Huhtamaki with efficiency improvements leading to
savings of approximately EUR 100 million over the next three years.
The Tianjin and Shanghai production sites planned to be closed do not represent
a material share of the sales or profits of Huhtamaki. In the first quarter of
2024, Huhtamaki will book closure-related costs of approximately EUR 13 million.
The costs will be booked as items affecting comparability.
For further information, please contact:
Kristian Tammela, Vice President, Investor Relations, tel. +358 10 686 7058
HUHTAMÄKI OYJ
Global Communications
About Huhtamaki
Huhtamaki is a leading global provider of sustainable packaging solutions for
consumers around the world. Our innovative products protect on-the-go and on-
the-shelf food and beverages, and personal care products, ensuring hygiene and
safety, driving accessibility and affordability, and helping prevent food waste.
We embed sustainability in everything we do. We are committed to achieving
carbon neutral production and designing all our products to be recyclable,
compostable or reusable by 2030. Our blueloopTM sustainable packaging solutions
are world-leading and designed for circularity.
We are a participant in the UN Global Compact, Huhtamaki is rated 'A' on the
MSCI ESG Ratings assessment and EcoVadis has awarded Huhtamaki with the Gold
medal for performance in sustainability. To play our part in managing climate
change, we have set science-based targets that have been approved and validated
by the Science-Based Targets initiative.
With 100 years of history and a strong Nordic heritage we operate in 37
countries and 107 operating locations around the world. Our values Care Dare
Deliver guide our decisions and help our team of around 18 000 employees make a
difference where it matters. Our 2023 net sales totalled EUR 4.2 billion.
Huhtamaki Group is headquartered in Espoo, Finland and our parent company,
Huhtamäki Oyj, is listed on Nasdaq Helsinki Ltd. Find out more about how we are
protecting food, people and the planet at www.huhtamaki.com
(http://www.huhtamaki.com).
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