Plastics packaging group Huhtamäki Oyj is planning to close a plant in Norway as part of measures to improve the competitiveness of its Foodservice Europe-Asia-Oceania business segment.
The Espoo, Finland-headquartered group said it is planning to close the plant in Viul in the third quarter, affecting 55 people. The plant produces the company's Chinet range of plates and bowls for the European market, and this production will be transferred to other group facilities.
Huhtamäki's sales, customer service and warehousing functions in Norway will be retained.
In another measure, Huhtamäki is reorganizing its foodservice plastics unit in Alf, Germany, to improve the segment's competitiveness in serving its core quick service, catering and vending customers.
The company said: "The unit will have a growing importance in supporting the group's core foodservice range of paper articles with complementary plastic items. The reorganization will result in certain asset write-offs and it is expected to affect some employees."
These two measures will lead to a one-time financial charge of approximately 8 million euros, which will be booked during 2013 in the Foodservice Europe-Asia-Oceania business segment. They will also result in savings of approximately 4 million euros in 2014.
Huhtamäki added that it has started a strategic review of its foodservice plastics unit in Italy, which it says is currently making losses.
