In a strategic move aimed at optimizing its production footprint in the Fiber Foodservice Europe-Asia-Oceania segment, Huhtamaki, a global leader in sustainable packaging solutions, has disclosed plans to cease operations at its production site in Port Klang, Malaysia, by the end of Q2 2024. This decision, while impactful, underscores the company's commitment to enhancing efficiency and competitiveness in the Asia Pacific region.

Despite the closure of the Port Klang site, Huhtamaki remains steadfast in its commitment to serving the region. The company will continue to operate distribution centers in Malaysia and Thailand, along with maintaining a sales office in Singapore. Additionally, Huhtamaki is dedicated to providing comprehensive support to the 93 affected employees during this transition period, ensuring a smooth and seamless process.

This consolidation initiative is part of Huhtamaki's broader strategy to accelerate its implementation program, as outlined in November 2023. By streamlining manufacturing operations and optimizing its footprint, the company aims to achieve substantial efficiency improvements. This strategic realignment is expected to yield significant cost savings, estimated at approximately €100 million over the next three years, thereby bolstering Huhtamaki's profitability and sustainability efforts.

Although the closure of the Port Klang site will incur closure-related costs totaling around €13 million during the first and second quarters of 2024, Huhtamaki emphasizes that this decision is necessary to ensure long-term competitiveness and growth in the region. Importantly, the Port Klang site represents a relatively small share of the company's overall sales and profits.

Huhtamaki remains committed to its core values of sustainability, innovation, and customer service. While navigating through this transition, the company continues to explore opportunities for growth and advancement in the ever-evolving global packaging industry.