Huhtamaki to streamline operations with fiber foodservice division split

FINLAND – Finnish packaging company Huhtamaki is set to reorganize its Fiber Foodservice Europe-Asia-Oceania business segment by splitting it into two distinct units: Fiber Packaging and Foodservice Europe-Asia-Oceania.

The transition is expected to be completed by April 1, 2025.

Initially integrated in 2020 to drive synergies and market expansion, these business segments have continued to be reported separately in external communications. Huhtamaki has confirmed that this separation will not impact its external reporting structure.

The decision to divide the segment follows the successful achievement of its original objectives, laying the foundation for future growth.

Each unit will now operate independently, led by its own president, both of whom will serve on Huhtamaki’s global executive team.

Sara Engber has been appointed as president of Fiber Packaging, while Fredrik Davidsson will continue as president of Foodservice Europe-Asia-Oceania.

Huhtamaki has stated that the separation is subject to the completion of any required statutory consultation processes.

Huhtamaki president and CEO Ralf Wunderlich emphasized that the reorganization aims to enhance efficiency and agility in serving customers.

“We are separating our Fiber Foodservice business into two distinct segments to empower our teams to operate more effectively,” said Wunderlich.

“This strategic move positions us for profitable growth by increasing accountability and accelerating execution in a dynamic business environment. It will also support our ambition to be the first choice in sustainable packaging.”

By refocusing on their respective areas of expertise, both segments will be better positioned to drive innovation. Despite the split, they will continue collaborating on key development areas, including Huhtamaki’s advanced smooth molded fiber (SMF) technology.

Expansion in sustainable packaging solutions

In line with its commitment to sustainability, Huhtamaki recently expanded its smooth molded fiber production at its Lurgan facility in Northern Ireland.

This move strengthens the company’s global footprint in SMF products, complementing its existing production sites in Germany, the Netherlands, the USA, and Asia.

With over 40 years of experience in fiber products, Huhtamaki’s SMF technology ensures high-quality, sustainable packaging solutions.

The company’s fiber lids, featuring a patented click-fit function for secure closure, are both home-compostable and easily recyclable.

Fredrik Davidsson, President of Fiber Foodservice E-A-O, expressed enthusiasm about the expansion.

“We’re thrilled to offer locally made smooth molded fiber lids to customers in the UK and Ireland. This investment reinforces our commitment to sustainable packaging solutions, backed by Lurgan’s 70-year legacy of paper pulping.”

Headquartered in Finland, Huhtamaki provides sustainable packaging solutions across the food, beverage, and personal care sectors.

The company aims to achieve carbon-neutral production and has set an ambitious goal to design all its products to be recyclable, compostable, or reusable by 2030.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE