Huhtamaki to close down flexible packaging unit

Huhtamaki has optimised its flexible packaging manufacturing footprint and will close down a manufacturing unit in New Lynn, New Zealand.

Huhtamaki will continue to serve its customers in Oceania from sales offices in Auckland, New Zealand and Melbourne, Australia. Manufacturing will be transferred to Huhtamaki's other flexible packaging units mainly in India, Thailand and Vietnam.

The closure of the New Lynn unit is expected to be finalised by the end of July 2012 and will affect approximately 135 employees.

To close the unit, Huhtamaki will take an approx EUR 8 million one-time charge in the third quarter 2011.

The closure of the New Lynn unit and the transfer of volumes to Asian units will have an estimated EUR 5 million annualised positive impact on the flexible packaging segment's EBIT as of H2 2012.

Huhtamaki currently has three manufacturing units in the Auckland area in New Zealand. The closure of the New Lynn unit does not affect the foodservice operations in Henderson or the moulded fibre operations in Otahuhu.

Huhtamaki will continue to have approximately 320 employees in New Zealand after the closure of the New Lynn unit.