Huhtamaki, a global packaging company, has announced plans to consolidate its production footprint in China within the Fiber Foodservice Europe-Asia-Oceania segment. This decision entails the closure of its production sites in Tianjin and Shanghai by the end of Q2 2024, with production being transferred to the Guangzhou manufacturing site. The company will, however, continue production at the Xuzhou site. This move affects 154 employees across the two sites, but Huhtamaki has committed to supporting them and assisting in finding new employment opportunities.
The consolidation aims to optimize manufacturing operations, enhance competitiveness, and lay a stronger foundation for future growth in the region. This decision aligns with Huhtamaki’s strategy implementation program, announced in November 2023, which seeks to significantly improve profitability through efficiency enhancements, resulting in anticipated savings of approximately EUR 100 million over the next three years.
While the planned closure of the Tianjin and Shanghai production sites will incur costs, these sites represent an insignificant portion of Huhtamaki’s sales or profits. In the first quarter of 2024, the company anticipates closure-related costs of approximately EUR 13 million, which will be classified as items affecting comparability.