Finland-based plastics packaging group, Huhtamäki Oyj, has announced that it is evaluating its options regarding its films business, due to its growing strategic focus on food packaging.
Huhtamäki says that a potential outcome of the evaluation is divestment of its films business segment.
The news comes as the group reports continued growth in sales, with 1.19 billion euros ($1.6 billion) taken in net sales for the first half of 2014, 6 percent up on the first half of 2013. The company also announced a 12 percent increase in its emerging markets compared to the first half of 2013.
The company states that its films segment's net sales have grown well in 2014 and that its financial performance is improving.
Huhtamäki's films business manufactures and sells films that are mainly used for technical applications in the label, adhesive tape, hygiene and health care industries, as well as building and construction, automotive, packaging and graphic arts industries. It has a separate flexible packaging business unit.
The net sales of the films business in 2013 reached 187 million euros ($252.8 million) and it employs 924. The segment serves global markets from manufacturing units in Europe, Asia, North America and South America.
CEO of Huhtamäki , Jukka Moisio, commenting on the company's financial results said: "Our organic growth this quarter was 7 percent against our target of 5 percent. Our good pace in the emerging markets continued and we achieved 12 percent organic growth. Given the continued economic uncertainty in many markets, I am particularly pleased that we have stayed well on our course.”
Huhtamäki announced earlier this month that it had agreed to acquire flexible packaging company Positive Packaging for 247 million euros ($336 million), which currently has nine manufacturing facilities in India and the United Arab Emirates.
“The acquisition of Positive Packaging also supports our growing focus on consumer food packaging. Due to this reason we have decided to evaluate options regarding our films business. While the business is growing well and improving its profitability, it serves different end users than the other Huhtamäki businesses,” said Moisio.
Hutamaki reported net sales of 2.3 billion euros ($3.1 billion) in 2013 and currently employs 14,400 people in 30 countries.