News

Huhtamaki to improve competitiveness in Asia-Oceania

HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 27.6.2016 AT 13:00

Huhtamaki to improve competitiveness in Asia-Oceania

Huhtamaki is taking actions to improve the competitiveness of its Foodservice business in Asia and Oceania. The actions concern the Foodservice Europe-Asia-Oceania segment's operations in China and New Zealand, which have had an adverse effect on the segment's earnings in 2015 and in the first quarter of 2016.

To improve competitiveness and to better equip the operations for capturing future growth opportunities in the Chinese market, the foodservice packaging manufacturing operations in South China will be consolidated into one efficient, modernized unit. In addition, manufacturing will be focused on a defined core foodservice packaging product range, while outsourcing capabilities will be strengthened to continue serving customers with a full range of high-quality foodservice packaging products. The actions are expected to have an impact on approximately 350 employees across functions.

Manufacturing operations at the foodservice packaging unit in Henderson, New Zealand, are reorganized to improve efficiency of the unit. The reorganization is expected to have an impact on approximately 15 employees.

In addition, following a supplemental site assessment at the manufacturing unit in Viul, Norway, which was closed in 2013, a provision to cover potential environmental remediation actions will be booked.

Related to the above activities Huhtamaki will book approximately EUR - 8 million as items affecting comparability (IAC) in the Foodservice Europe-Asia-Oceania business segment in the second quarter of 2016.

Combined with an earlier announced non-recurring gain of approximately EUR 8 million, relating to an increase of Huhtamaki's ownership in the joint venture of Arabian Paper Products Company, the total effect of IAC's in the Foodservice Europe-Asia-Oceania business segment in the second quarter of 2016 is slightly negative.

For further information, please contact:
Jukka Moisio, CEO, tel. +358 10 686 7801
Thomas Geust, CFO, tel. +358 10 686 7880

HUHTAMÄKI OYJ
Group Communications

Huhtamaki is a global specialist in packaging for food and drink. With our network of 73 manufacturing units and 23 sales offices in 34 countries, we're well placed to support our customers' growth wherever they operate. Mastering three distinctive packaging technologies, approximately 16,000 employees develop and make packaging that helps great products reach more people, more easily. In 2015 our net sales totaled EUR 2.7 billion. The Group has its head office in Espoo, Finland and the parent company Huhtamäki Oyj is listed on Nasdaq Helsinki Ltd. Additional information is available at www.huhtamaki.com.