Huhtamaki invests to boost growth in its Flexible Packaging business segment
(Thomson Reuters ONE) -
HUHTAMÄKI OYJ PRESS RELEASE 25.10.2016 AT 09:00
Huhtamaki invests to boost growth in its Flexible Packaging business segment
Huhtamaki will set up three new manufacturing units to boost growth in its
Flexible Packaging business segment. The largest of the new units will be
located in the greater Cairo area in Egypt and the other two in North East
India. In addition, one label manufacturing unit in the Mumbai area will be
relocated and modernized. "The investment in Egypt marks our entry into
manufacturingflexible packaging in Africa. With its rapid population growth
Africa is expected to offer sizable future growth opportunities to us and our
customers," says Jukka Moisio, CEO of Huhtamäki Oyj. "With the investments in
India we will further improve our geographic coverage of the country and our
ability to service customers in food and pharma industries. After these
additions our total number of manufacturing units in India grows to 17."
New Greenfield in Egypt
The new state of the art manufacturing unit in Egypt will be owned and operated
as a joint venture of which Huhtamaki owns 75%. The remaining 25% is owned by
Huhtamaki's Egyptian joint venture partner in Molded Fiber business since 2003,
Mr. Ayman Korra. The total investment including the land purchase, the first
phase of the facility construction, machinery and utilities is expected to be
approx. EUR 23 million with Huhtamaki share at approx. EUR 17 million. Majority
of the investment is expected to take place in 2016-2017.
Manufacturing at the facility is scheduled to begin during 2018 and the unit is
expected to employ approx. 300 employees when fully operational. The unit will
serve both global and local flexible packaging customers as well as export its
products into other countries. Currently Huhtamaki serves flexible packaging
customers in Egypt from its operations in United Arab Emirates and India. "We're
excited to expand our manufacturing network into Africa", says Olli Koponen,
Executive Vice President, Flexible Packaging business segment. "We will
replicate the state of the art solutions from our newest unit in United Arab
Emirates and look forward to servicing new and current customers with
efficiently produced top quality flexible packaging."
Two new units and one modernization in India
To better service customers operating in North East India, a new flexible
packaging manufacturing unit will be set up in the State of Assam and a label
manufacturing unit in the State of Sikkim. Both units are expected to begin
operations during the first half of 2017. In addition, a label manufacturing
unit operating in the Greater Mumbai Region will be relocated to a new state of
art facility in order to gain room for growth. The relocation to the new
facility is expected to be completed by the end of 2017. The combined value of
these growth investments in India is expected to be approx. EUR 9 million and
they are expected to take place in 2016-2017.
For further information, please contact:
Media: Katariina Hietaranta, tel. +358 10 686 7863
Investors: Kaisa Uurasmaa, tel. +358 10 686 7815
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 17,000 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.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Huhtamäki Oyj via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 25.10.2016 - 08:01 Uhr
Sprache: Deutsch
News-ID 502521
Anzahl Zeichen: 4546
contact information:
Town:
Espoo
Kategorie:
Business News
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