Huhtamaki has made the decision to consolidate the production footprint of its Flexible Packaging segment in Europe and will be closing its Flexible Packaging production facility in Prague, Czech Republic. All production and supporting activities at the facility will be scaled down during the second half of the year, with the closure of the operations completed by 31 March, 2024.
A cash positive closure
The decision affects all 198 employees in the site. Huhtamaki will support its employees during this period, including providing information about vacancies in other Huhtamaki units in the Czech Republic and across Europe. The company currently has two manufacturing units in Czech Republic. The closure of the Prague site does not affect the fiber packaging operations in Okrisky which today employs 274 people.
The Flexible Packaging Prague facility does not represent a material share of the sales or profits of Huhtamaki. Huhtamaki will book closure-related costs of approximately EUR 35 Million in the second quarter of 2023. The costs will be booked as items affecting comparability and are mostly non-cash items. Over time, the closure is expected to be cash positive and improve its competitiveness in Europe.
Provider of sustainable packaging solutions
Huhtamaki is a leading global provider of sustainable packaging solutions for consumers around the world. Its innovative products protect on-the-go and on-the-shelf food and beverages, and personal care products, ensuring hygiene and safety, driving accessibility and affordability, and helping prevent food waste. It embeds sustainability in everything it does. It is committed to achieving carbon neutral production and designing all its products to be recyclable, compostable or reusable by 2030. Its blueloop sustainable packaging solutions are world-leading and designed for circularity.
A participant in the UN Global Compact, Huhtamaki is rated ‘A’ on the MSCI ESG Ratings assessment and EcoVadis has awarded Huhtamaki with the Gold medal for performance in sustainability. To play its part in managing climate change, it has set science-based targets that have been approved and validated by the Science-Based Targets initiative.
With 100 years of history and a strong Nordic heritage Huhtamaki operates in 37 countries and 116 operating locations around the world. Its values Care Dare Deliver guide our decisions and help our team of around 19000 employees make a difference where it matters. The company's 2022 net sales totalled EUR 4.5 Billion. Huhtamaki Group is headquartered in Espoo, Finland and its parent company, Huhtamäki Oyj, is listed on Nasdaq Helsinki.