Finnish packaging producer Huhtamaki plans to concentrate its production in China at fewer locations. The company, which operates a total of four plants in the country, will close its plants in Tianjin and Shanghai by the end of June. Production is to be transferred to the site in Guanzhou, Huhtamaki said in a press release. The site in Xuzhou will also remain in operation. The closures will affect 154 employees.
Huhtamaki‘s plants in China are all part of the Fibre Foodservice business. The division offers moulded fibre and paperboard packaging for fresh food and drinks across Europe, Asia and Oceania.
The measure is part of a programme that Huhtamaki announced last year. The company wants to operate more efficiently and profitably and aims at savings of around €100m over the next three years. Operations are to be optimised and the business streamlined. These measures are supposed to strengthen the foundation for future growth in the region.
According to Huhtamaki, the Tianjin and Shanghai plants do not represent a material share of its sales or profits. In the first quarter of 2024, the company will book closure-related costs of approximately €13m.
