Huhtamäki Oyj : Huhtamaki taking further actions in its Foodservice
Europe-Asia-Oceania segment to improve competitiveness
HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 13.6.2013 AT 15:00
Huhtamäki Oyj has initiated further efficiency enhancing measures to improve
the competitiveness of its Foodservice Europe-Asia-Oceania business segment.
Employee cooperation procedures have been initiated within the Group's
Foodservice unit in Viul, Norway, with a view to close the plant. In addition
the Foodservice plastics unit in Alf, Germany, is being reorganized to improve
the segment's competitiveness and focus on supporting its core businesses.
The potential closure of the Viul plant in Norway, currently manufacturing
Chinet® plates and bowls for the European market, is planned to take place
during the third quarter of 2013 and would affect approximately 55 people. The
manufacturing of Chinet® plates and bowls is planned to be transferred to the
Group's other units. The planned transfer will not affect the supply of
Chinet® products in Europe and customers will continue to be served by their
local sales teams. Huhtamaki will also continue to serve its customers locally
in Norway as the sales, customer service and warehousing functions in Norway
are planned to be retained.
The Foodservice plastics unit in Alf, Germany, is being reorganized to improve
the segment's competitiveness in serving its core quick service, catering and
vending customers. The unit will have a growing importance in supporting the
Group's core foodservice range of paper articles with complementary plastic
items. The reorganization will result in certain asset write-offs and it is
expected to affect some employees.
To cover the costs of the above activities a one-time charge of approximately
EUR 8 million will be booked during 2013 in the Foodservice
Europe-Asia-Oceania business segment. Approximately EUR 4 million of the costs
are cash costs and the outflow is expected to take place in 2013. These
restructuring activities are expected to result in savings of approximately
EUR 4 million in 2014.
Furthermore, a strategic review has been initiated in the Group's Foodservice
plastics unit in Italy. The unit is loss making.
For further information, please contact:
Jukka Moisio, CEO, tel. +358 10686 7801
Timo Salonen, CFO, tel. +358 10686 7880
Huhtamaki Group is a leading manufacturer of consumer and specialty packaging
with 2012 net sales totaling EUR 2.3 billion. Foodservice and consumer goods
markets are served by approximately 14,400 people in 64 manufacturing units
and several sales offices in 31 countries. The parent company, Huhtamäki Oyj,
has its head office in Espoo, Finland and its share is quoted on NASDAQ OMX
Helsinki Ltd. Additional information is available at www.huhtamaki.com.
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Source: Huhtamäki Oyj via Thomson Reuters ONE
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