Huhtamaki has confirmed it is planning to consolidate its production footprint in China in the Fibre Foodservice Europe-Asia-Oceania segment and will close its production sites in Tianjin and Shanghai by the end of Q2 2024.
The production will be transferred to the manufacturing site in Guangzhou. Additionally, Huhtamaki continues production at the site in Xuzhou. The decision affects 154 employees in the two sites. Huhtamaki will support the impacted employees and provide assistance in finding new employment.
The company said in a statement that the aim of the consolidation is to optimise the manufacturing footprint, improve the competitiveness and strengthen the foundation for future growth in the region. The announced change is part of Huhtamaki’s program to accelerate strategy implementation, announced in November 2023, expected to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately €100m over the next three years.
The Tianjin and Shanghai production sites planned to be closed do not represent a material share of the sales or profits of Huhtamaki. In the first quarter of 2024, Huhtamaki will book closure-related costs of approximately €13m. The costs will be booked as items affecting comparability.
