Finnish packaging company Huhtamäki Oyj has initiated efficiency enhancing measures in an attempt to improve the competitiveness of its Foodservice Europe-Asia-Oceania business segment.
The company initiated employee cooperation procedures within its Foodservice unit in Viul, Norway, with a view to close the plant, which manufactures Chinet plates and bowls for the European market.
According to Huhtamäki, the plant closure is set to take place during the third quarter of 2013 and the manufacturing of Chinet plates and bowls is planned to be moved to the group’s other units.
The company’s Foodservice plastics unit in Alf, Germany is also being reorganized in order to improve the segment’s focus on supporting its core businesses.
The unit will have a growing importance in supporting the group’s core foodservice range of paper articles with plastic items.
Expected to result in certain asset write-offs, the reorganization will also affect some employees.
The company will book a one-time charge of about €8m during 2013 in the Foodservice Europe-Asia-Oceania business segment to cover the costs of the above activities.
The restructuring initiatives are expected to result in savings of about €4m in 2014.
Huhtamäki also initiated a strategic review in its Italian loss making Foodservice plastics unit.