The Finnish single-use cup and packaging giant’s decision to shut facilities in Tianjin and Shanghai follows production site closures in the Czech Republic and India last year
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Huhtamäki will close sites in Tianjin and Shanghai by the end of the second quarter | Photo credit: Huhtamäki
Finnish single-use cup and packaging giant Huhtamäki will close two factories in China this year as it seeks to consolidate its production footprint in the country.
Huhtamäki will close sites in Tianjin and Shanghai by the end of the second quarter, with production transferred to the company’s manufacturing site in Guangzhou. The move affects 154 employees across the two sites. Huhtamäki’s production operations at its Xuzhou site will remain unaffected.
In a press release, Huhtamäki said it is optimising its manufacturing footprint in China to strengthen foundations for future growth in the region.
The closures follow several site closures in 2023 as Huhtamäki seeks to optimise its global manufacturing footprint, improve productivity and save approximately €100m ($109m) over the next three years.
In June 2023 the business announced plans to close its Prague packaging facility – one of two in the Czech Republic. The following November, Huhtamäki consolidated its five manufacturing sites in India into larger local units.
Huhtamäki posted a decline in full-year sales and earnings last year as high inflation dented foodservice demand for its products. The Espoo-based single-use cup and packaging giant reported a 7% year-on-year fall in sales to €4.16bn ($4.48bn) while adjusted EBIT fell 1% to €393m ($423m).