Huhtamaki consolidates flexible packaging manufacturing sites in UAE

UAE – Huhtamaki has announced plans to consolidate its three Flexible Packaging manufacturing sites in the United Arab Emirates, retaining one Jebel Ali factory and expanding the Ras Al Khaimah facility.

This transition will occur gradually during the second half of 2024.

According to Huhtamaki, the consolidation aims to enhance manufacturing efficiency, boost competitiveness, and establish a robust foundation for future growth in the region.

This move aligns with the company’s strategy to expedite implementation, which was announced in November last year.

The company expects these changes to support its profitability and efficiency significantly. Anticipated efficiency improvements are projected to yield savings of around €100 million (US$108.73 million) over the next three years.

The planned consolidation does not represent a significant portion of Huhtamaki’s sales or profits. However, the company will incur consolidation-related costs totaling approximately €4 million (US$4.35 million) in the second quarter of 2024. These costs will be recorded as items affecting comparability.

Headquartered in Espoo, Finland, Huhtamaki operates in 37 countries with 107 locations worldwide. The company provides packaging solutions for food, beverages, and personal care products, ensuring hygiene and safety.

These solutions also promote accessibility and affordability while helping to prevent food waste.

Meanwhile, Huhtamaki revealed plans to consolidate production within the fibre food service Europe-Asia-Oceania segment in China in March.

The company intends to close its Tianjin and Shanghai sites by the end of the second quarter of 2024, transferring operations to the Guangzhou facility.

This restructuring will not affect production at the Xuzhou site, although it will impact 154 employees. Huhtamaki is committed to supporting its workforce in transitioning to new employment opportunities. This strategic maneuver aims to optimize the company’s manufacturing footprint and bolster its competitiveness.

Last month, the prestigious Financial Times recognized the company as a Climate Leader in Europe, an honor reserved for top-tier European companies with revenues exceeding €40 million (US$43.45m).

The Climate Leader Award is a prestigious accolade that is not easily earned. It is bestowed upon companies that have made significant strides in reducing their Scope 1 and 2 emissions intensity over a five-year period. Huhtamaki’s inclusion on this list is a testament to its dedication to sustainability.

Huhtamaki’s inclusion on this list was driven by the validation of its climate targets by the Science Based Targets Initiative (SBTi) and its strong CDP Climate score.

Notably, achieving a CDP Climate score of at least B- is mandatory for inclusion, and Huhtamaki surpassed this threshold with a B rating.

For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on LinkedIn and subscribe to our YouTube channel.