Huhtamaki invests US$100 mn in US facility and EUR15 mn to grow in China

Finland’s packaging giant Huhtamaki is investing in the expansion and modernisation of its manufacturing unit in Guangzhou, South China. The total investment including site expansion, improvements in plant layout and new high-speed machinery is expected to be approximately EUR15 million.

"With its growing population and rapid urbanisation China is an important market for our quick service and specialty coffee customers. With this investment we will create a modern, efficient, high-capacity manufacturing unit and significantly improve our productivity and capability to serve our customers in the future," says CEO Jukka Moisio.

The investment follows Huhtamaki's earlier announced actions to improve the competitiveness of its foodservice business in China and consolidate the South China manufacturing operations. The modernised unit will manufacture a defined core foodservice packaging product range. Majority of the investment will take place in the latter part of 2016 and early 2017, and the modernisation is expected to be completed by the end of 2017.

In other news, Huhtamaki is purchasing a manufacturing facility to set up a new manufacturing and distribution unit in the US. The facility is located in Goodyear, Arizona, and is set to service the southwest and west coast foodservice packaging and retail tableware markets.

The total investment including the site purchase and modifications, improvements in infrastructure, and machinery investments and installations is expected to exceed US$100 million. Majority of the investment will take place in 2016-2017. Huhtamaki will start using the 70,000 sq m facility as a distribution centre in early 2017 and manufacturing is scheduled to begin in late 2017. When fully operational, the unit is expected to employ approximately 300 employees and manufacture a full range of products including single wall paper cups, insulated paper hot cups, folding carton packaging, food containers, pressed paperboard plates and plastic cups and lids.

Huhtamaki has a network of 73 manufacturing units and 23 sales offices in 34 countries, with 17,000 employees. In 2015, its net sales totalled EUR2.7 billion