Huhtamaki to close two plants in China to consolidate fiber-based packaging production

07 Mar 2024 --- Huhtamaki is planning to consolidate its production footprint in China in the Fiber Foodservice Europe-Asia-Oceania segment and will close production sites in Tianjin and Shanghai by the end of Q2 2024. 

The consolidation aims to optimize the manufacturing footprint, improve the competitiveness and strengthen the foundation for future growth in the region. 

Production in Tianjin and Shanghai will be transferred to the manufacturing site in Guangzhou. The decision affects 154 employees in the two sites. Huhtamaki will support the impacted employees and assist in finding new employment. 

The packaging giant will continue production at its Xuzhou site.

Accelerated strategy
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 €100 million (US$109 million) over the next three years.

The planned closing of the Tianjin and Shanghai production sites 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 €13 million (US$14 million). The costs will be booked as items affecting comparability.

In other news, Packaging Insights spoke with Huhtamaki’s vice president of sustainability, Dr. Paul Collins, about how technological advances and policy measures are helping packagers secure supply transparency.

Edited by Natalie Schwertheim