ESPOO, FINLAND (Aug. 31, 3 p.m. ET) — Flexible packaging company Huhtamäki Oyj plans to close a manufacturing plant in New Lynn, New Zealand, the company announced Aug. 31.
Manufacturing will shift to existing plants in India, Thailand and Vietnam, and sales will be handled from offices in Auckland, New Zealand, and Melbourne, Australia.
The Espoo-based headquarters said the New Lynn plant was losing money.
New Lynn employed 135. Huhtamäki will take an approximately 8 million euro one-time charge against its earnings in the third quarter 2011 for costs associated with the closure.
The closure does not affect Huhtamäki foodservice operations in Henderson, New Zealand, or molded fiber operations in Otahuhu, New Zealand. Huhtamäki will have about 320 employees in New Zealand after the closure of the New Lynn plant.
Huhtamäki makes consumer and specialty packaging, has about 12,000 employees and 2010 sales of 2 billion euros.