Huhtamaki, a global packaging company, has announced plans to consolidate its three Flexible Packaging manufacturing sites in the United Arab Emirates (UAE). The company will maintain one factory in Jebel Ali and expand the facility in Ras Al Khaimah. This transition is set to occur gradually during the second half of 2024.
The decision to consolidate is aimed at optimizing the manufacturing footprint, enhancing competitiveness, and laying a stronger foundation for future growth in the region. This move aligns with Huhtamaki’s strategy implementation program, which was unveiled in November 2023. The program is expected to significantly boost the company’s profitability through efficiency improvements, resulting in savings of approximately EUR 100 million over the next three years.
Despite the consolidation, the affected operations do not constitute a substantial portion of Huhtamaki’s sales or profits. In the second quarter of 2024, the company anticipates incurring consolidation-related costs totaling approximately EUR 4 million. These costs will be recognized as items affecting comparability.