MOSCOW (MRC) -- Huhtamaki supports the profitable growth of its foodservice business in China by investing in the expansion and modernization of its manufacturing unit in Guangzhou, South China, said the company on its site.
The total investment including site expansion, improvements in plant layout and new high-speed machinery is expected to be approximately EUR 15 million. "With its growing population and rapid urbanization China is an important market for our quick service and specialty coffee customers. With this investment we will create a modern, efficient, high-capacity manufacturing unit and significantly improve our productivity and capability to serve our customers in the future," says CEO Jukka Moisio.
The investment follows Huhtamaki's earlier announced actions to improve the competitiveness of its foodservice business in China and consolidate the South China manufacturing operations. The modernized unit will manufacture a defined core foodservice packaging product range. Majority of the investment will take place in the latter part of 2016 and early 2017, and the modernization is expected to be completed by the end of 2017.
"This major investment brings our operations in China into a new level and strengthens our position as a leading foodservice packaging provider in East Asia," says Eric Le Lay, Executive Vice President, Foodservice Europe-Asia-Oceania business segment. "We're pleased to invest in serving our customers better and helping them grow."
As MRC informed earlier, last year Huhtamaki acquired the assets and business of Pure-Stat Technologies, Inc., a privately owned company in the United States. Pure-Stat's laminate is used as a component in a number of Huhtamaki's molded fiber products. The company employs 12 people in its manufacturing unit in Lewiston, Maine.
Huhtamaki is a global specialist in packaging for food and drink. With our network of 73 manufacturing units and 23 sales offices in 34 countries, we're well placed to support our customers' growth wherever they operate. Mastering three distinctive packaging technologies, approximately 17,000 employees develop and make packaging that helps great products reach more people, more easily. In 2015 our net sales totaled EUR 2.7 billion.
MRC