Huhtamaki Van Leer Oyj has reversed its plan to sell its German films and coatings operations, choosing instead to retain their expertise for the parent company's new core consumer packaging businesses.
Meanwhile, Espoo, Finland-based HVL announced in December that it had completed the purchase of Packaging Resources Inc. of Lake Forest, Ill. However, HVL revealed that the acquisition, originally priced at $185 million, was finalized for a lesser sum of between $160 million and $165 million, subject to certain commercial performance criteria.
The thermoformer and injection molder is being integrated into HVL.
HVL also confirmed it is set to conclude a deal to dispose of its former Van Leer industrial packaging business to Greif Bros. Corp. of Delaware, Ohio, by the end of March. Greif agreed in October to pay $620 million for HVL's steel, fiber and plastic drum, intermediate bulk container and closure operations in 45 countries.
HVL is in the process of restructuring its European operations after its formation in 1999 from the merger of Finnish food and food service packaging group Huhtamaki Oyj and Royal Packaging Industries Van Leer NV of Amstelveen, the Netherlands.
HVL intends to cut its number of plants and create dedicated centers for all main production technologies and a network of fewer, larger, more-specialized manufacturing sites. The company will relocate more than 40 production lines in Europe.
In August, HVL had announced plans to sell the technical films and coatings units at plants in Gottingen and Forchheim, Germany. Both sites also house mainstream HVL manufacturing operations. In the case of Gottingen, there is a tub and lid packaging plant, while Forchheim has a consumer flexible packaging unit.
Now HVL has reversed itself and plans to keep the two operations, which have annual sales totaling about 100 million euros ($95 million).
In December, HVL announced the sale of two small French plastics operations and plans to close its paper packaging plant at Groenlo, the Netherlands, cutting up to 240 jobs. The company intends to switch paper packaging production to the larger Gottingen facility, just across the Dutch border. HVL aims to shift an unspecified number of workers from Groenlo to Gottingen.
The French units include a plastic sheet extruding plant and a facility that specializes in thermoformed egg packaging.