EUROPE – Sustainable packaging company Huhtamaki has made the decision to consolidate the production footprint of its Flexible Packaging segment in Europe and will be closing its Flexible Packaging production facility in Prague, Czech Republic.
The Finnish consumer packaging company will scale down all the production and supporting activities at the facility during the second half of 2023. The closure of the operations is expected to complete by 31 March 2024.
Huhtamaki said that the production operations will be slowly shifted to its other production sites.
The move will impact all 198 workers at the location. During this period, Huhtamaki will assist its staff members, especially by informing them of job openings at other Huhtamaki locations in the Czech Republic and around Europe.
Currently, Huhtamaki operates two factories in the Czech Republic. The fiber packaging operation in Okrisky, which currently employs 274 people, is unaffected by the shutdown of the Prague factory.
The closure is anticipated to be cash positive and boost the firm’s competitiveness in Europe over time.
Meanwhile, the company has been expanding its footprint in Asia and Africa. Early this year, Huhtamaki acquired full ownership of Huhtamaki Tailored Packaging Pty Ltd (HTP).
HTP is the importer and distributor of food service packaging in Australia. It serves a range of customers, including metropolitan and regional packaging wholesalers, food wholesalers, club and hospitality suppliers, and national quick-service restaurant businesses.
Huhtamaki already purchased a majority stake in HTP in 2018 and held approximately 76% of the company before this full ownership transaction.
In South Africa, the company partnered with the international charity WasteAid for a two-year program that provides training and support to South African waste collectors.
Dubbed “Wastepreneurs,” the initiative aims to develop South African waste collectors’ skills and capacity, move up the value chain and earn more money.
The Waste Entrepreneurial Challenge Fund commenced in the township of Diepsloot, South Africa, on March 30, 2023.
It is designed to support up to 50 informal waste collectors over two years to develop their skills and capacity in recycling.
Furthermore, the challenge will involve a tailored 12-week holistic training course, culminating in an opportunity for candidates to pitch for seed funding to grow their businesses.
That’s not all the company is doing to promote sustainability and circularity. In April this year, Huhtamaki unveiled its plans to introduce three new sustainable solutions in mono-material flexible packaging.
The firm announced that the solutions are recyclable and are expected to use fewer materials than conventional complex and multi-layered materials.
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