Further optimising its flexible packaging manufacturing footprint, Finnish packaging giant Huhtamaki (Espoo; www.huhtamaki.com) on 30 August 2011 announced that it would close down its loss-making manufacturing unit in New Lynn / New Zealand. The group said the closure would not affect its Foodservice operations in Henderson or its Molded Fibre operations in Otahuhu, both also located in New Zealand.

The flexible packaging manufacturing activities are to move from New Lynn to other group units in India, Thailand and Vietnam, Huhtamaki said, adding that it would continue to serve the New Zealand flexible packaging market through its sales offices in Auckland and Melbourne / Australia.

The closure, which will affect about 135 employees, is due to be finalised by the end of July 2012. As a result of it, Huhtamaki will incur a one-time EUR 8m charge in Q3 2011. All in all, however, the Finnish group says the shutdown and transfer will have an estimated EUR 5m annualised positive impact on its Flexible Packaging segment’s EBIT by H2 2012.