Huhtamaki is aiming to withdraw from rigid plastics Consumer Goods manufacturing in the UK

Huhtamaki has completed the review of different strategic options for its Rigid Consumer Goods business unit in the UK. Huhtamaki is aiming to cease production of rigid plastic consumer goods packaging in the UK due to volume decline as well as continued increases in manufacturing and energy costs.

The Consumer Goods business unit in the UK is loss-making with annual net sales of around EUR 30 million. Costs related to the planned closure will have an approximately EUR 8 million one-time adverse impact on Group 2008 EBIT. The annualized earnings improvement is expected to be EUR 3-4 million.

A consultation process will start in relation to approximately 160 employees impacted at the Portadown and Gosport sites. Huhtamaki will continue to serve the UK Consumer Goods customers with specialty products, mainly paper based, from other Huhtamaki facilities. The manufacturing of foodservice products at the Gosport site will continue.