The move is part of Huhtamaki’s plans to streamline its production operations, enhance operational efficiency, bolster competitiveness, and lay a solid groundwork for future expansion in the Asia Pacific region
Huhtamaki to close its site in Port Klang, Malaysia. (Credit: Huhtamäki Oyj)
Huhtamaki, a sustainable packaging solutions provider, is planning to close its production facility in Port Klang, Malaysia, by the end of Q2 2024.
The move is part of Huhtamaki’s plans to streamline its production operations within the Fiber Foodservice Europe-Asia-Oceania segment.
The Finnish packaging solutions provider will continue serving the region through its distribution centres in Malaysia and Thailand, along with a sales office in Singapore.
According to Huhtamaki, the move is expected to impact 93 employees, for whom the company will offer support.
The consolidation aims to enhance operational efficiency, bolster competitiveness, and lay a solid groundwork for future expansion in the Asia Pacific region.
It also aligns with the packaging firm’s strategy to expedite its implementation plan unveiled in November 2023.
The announced change is anticipated to significantly enhance the company’s profitability through efficiency improvements, yielding savings of around €100m over the next three years.
The intended closure of the Port Klang site is insignificant in terms of both sales and profits for Huhtamaki.
During the initial two quarters of 2024, Huhtamaki anticipates incurring closure-related expenses totaling around €13m, which will be designated as items affecting comparability.
The latest announcement follows the packaging company’s plans to consolidate the production footprint in China in the Fibre Foodservice Europe-Asia-Oceania area.
Under the plan, Huhtamaki will shut down its production sites in Tianjin and Shanghai by the end of Q2 2024.
Huhtamaki specialises in making tableware, cups, folding cartons, containers, carriers, trays, and service ware for both the food service sector and retail market.
The company operates in 37 countries and in 2023 had registered net sales of €4.2bn.
In July last year, the sustainable packaging solutions provider unveiled plans to invest $30m to expand its facility in Paris, Texas in the US for further expansion in the North American region.