Huhtamaki has decided to consolidate its three Flexible Packaging manufacturing sites in the United Arab Emirates, keeping one factory in Jebel Ali and expanding the one in Ras Al Khaimah. The transition will gradually take place during the second half of 2024.
The aim of the consolidation is to optimize the manufacturing footprint, improve the competitiveness and strengthen the foundation for future growth in the region. The announced change is part of Huhtamaki’s program to accelerate strategy implementation published in November 2023 and expected to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately EUR 100 million over the next three years.
Planned consolidation does not represent a material share of the sales or profits of Huhtamaki. During the second quarter of 2024, Huhtamaki will book consolidation-related costs in total of approximately EUR 4 million. The costs will be booked as items affecting comparability.https://www.packagingworldinsights.com/wp-content/uploads/news/36108/huhtamaki_1.jpg