Bli medlem
Bli medlem

Du är här

2016-10-25

Huhtamäki Oyj: Huhtamaki invests to boost growth in its Flexible Packaging business segment

HUHTAMÄKI OYJ PRESS RELEASE 25.10.2016 AT 09:00

Huhtamaki invests to boost growth in its Flexible Packaging business segment

Huhtamaki will set up three new manufacturing units to boost growth in its
Flexible Packaging business segment. The largest of the new units will be
located in the greater Cairo area in Egypt and the other two in North East
India. In addition, one label manufacturing unit in the Mumbai area will be
relocated and modernized. "The investment in Egypt marks our entry into
manufacturingflexible packaging in Africa. With its rapid population growth
Africa is expected to offer sizable future growth opportunities to us and our
customers," says Jukka Moisio, CEO of Huhtamäki Oyj. "With the investments in
India we will further improve our geographic coverage of the country and our
ability to service customers in food and pharma industries. After these
additions our total number of manufacturing units in India grows to 17."

New Greenfield in Egypt

The new state of the art manufacturing unit in Egypt will be owned and
operated as a joint venture of which Huhtamaki owns 75%. The remaining 25% is
owned by Huhtamaki's Egyptian joint venture partner in Molded Fiber business
since 2003, Mr. Ayman Korra. The total investment including the land
purchase, the first phase of the facility construction, machinery and
utilities is expected to be approx. EUR 23 million with Huhtamaki share at
approx. EUR 17 million. Majority of the investment is expected to take place
in 2016-2017.

Manufacturing at the facility is scheduled to begin during 2018 and the unit
is expected to employ approx. 300 employees when fully operational. The unit
will serve both global and local flexible packaging customers as well as
export its products into other countries. Currently Huhtamaki serves flexible
packaging customers in Egypt from its operations in United Arab Emirates and
India. "We're excited to expand our manufacturing network into Africa", says
Olli Koponen, Executive Vice President, Flexible Packaging business segment.
"We will replicate the state of the art solutions from our newest unit in
United Arab Emirates and look forward to servicing new and current customers
with efficiently produced top quality flexible packaging."

Two new units and one modernization in India

To better service customers operating in North East India, a new flexible
packaging manufacturing unit will be set up in the State of Assam and a label
manufacturing unit in the State of Sikkim. Both units are expected to begin
operations during the first half of 2017. In addition, a label manufacturing
unit operating in the Greater Mumbai Region will be relocated to a new state
of art facility in order to gain room for growth. The relocation to the new
facility is expected to be completed by the end of 2017. The combined value
of these growth investments in India is expected to be approx. EUR 9 million
and they are expected to take place in 2016-2017.

For further information, please contact:
Media: Katariina Hietaranta, tel. +358 10 686 7863
Investors: Kaisa Uurasmaa, tel. +358 10 686 7815

HUHTAMÄKI OYJ
Group Communications

Huhtamaki is a global specialist in packaging for food and drink. With our
network of 73 manufacturing units and 23 sales offices in 34 countries, we're
well placed to support our customers' growth wherever they operate. Mastering
three distinctive packaging technologies, approximately 17,000 employees
develop and make packaging that helps great products reach more people, more
easily. In 2015 our net sales totaled EUR 2.7 billion. The Group has its head
office in Espoo, Finland and the parent company Huhtamäki Oyj is listed on
Nasdaq Helsinki Ltd. Additional information is available atwww.huhtamaki.com.

---------------------------------------

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Huhtamäki Oyj via Globenewswire

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.