HUHTAMAKI
Consolidations in China foodservice packaging operations / Reorganisation in New Zealand / Layoffs and restructuring in response to underperformance
Huhtamaki (Espoo / Finland; www.huhtamaki.com) is taking a number of measures to improve the cost competitiveness of its Foodservice Europe-Asia-Oceania segment. When reporting its financial results for 2015, the Finnish packaging group had indicated that developments in the business varied extensively according to the region, pointing out that its Oceania business had underperformed, while net sales in China declined (see Plasteurope.com 17.02.2016). The units in question also had an adverse effect on Q1 2016 earnings.

In southern China, Huhtamaki will consolidate its foodservice packaging manufacturing operations into one unit, which will focus on “a defined core foodservice packaging product range.” At the same time, the company said it will strengthen its outsourcing capacities. The initiatives, which Huhtamaki said will improve competitiveness and help it capture future growth opportunities in the country, will impact about 350 employees.

Further south, in Henderson / New Zealand, the company also intends to reorganise its foodservice packaging production. The efficiency improvement will likely result in the layoff of about 15 workers. Huhtamaki said the measures in both countries – coupled with a “potential environmental remediation action” at its former production site in Viul / Norway, which was shuttered in 2013 – will result in a EUR 8m charge booked as “items affecting comparability” (IAC) for the Foodservice Europe-Asia-Oceania business segment in Q2 2016. However, the company added that combined with the non-recurring gain of about EUR 8m related to an increase in its ownership in Arabian Paper Products, the total effect on its Q2 2016 IAC will be “slightly negative”.
29.06.2016 Plasteurope.com [234413-0]
Published on 29.06.2016

© 2001-2019 Plasteurope.com  |  Imprint  |  Privacy

Plasteurope.com is a business information platform for the European plastics industry. It is part of KI Kunststoff Information and PIE Plastics Information Europe, one of the leading content providers for the European plastics industry. We offer daily updated business news and reports, in-depth market analysis, polymer prices and other services for the international plastics industry, including a suppliers guide, career opportunities, a trade name directory and videos.

News | Polymer Prices | Material Databases | Plastics Exchange | Suppliers Guide | Jobs | Trade Names | Videos | Associations & Institutions | Register | Advertising

PIE – Plastics Information Europe | KI – Kunststoff Information | KunststoffWeb | Plastics Material Exchange | Polyglobe | K-Profi
© 2001-2019 by Plasteurope.com, Bad Homburg
Date of print: 14.11.2019 09:39:58   (Ref: 639217567)
Text and images are subject to copyright and other laws for protection of intellectual property.
Any duplication or distribution in any media as a whole or in parts requires prior written approval by Plasteurope. URL: http://www.plasteurope.com/news/detail.asp