Huhtamäki sells one of its manufacturing facilities in China to Guangzhou Yashao

Huhtamaki agreed to sell one of its manufacturing facilities and the related land usage rights in China to Guangzhou Yashao Investment Co. Ltd. According to the announcement, the sale is part of the ongoing consolidation of Huhtamaki’s foodservice packaging manufacturing operations in South China. The transfer of manufacturing activities is expected to be completed and the sold facility vacated during the third quarter of 2017.

The selling price is approx. EUR 14 million and the sale is expected to be finalized during the second quarter of 2017. As a result of the sale, a gain of approx. EUR 6 million will be booked as an item affecting comparability (IAC) in the second quarter of 2017 in the Foodservice Europe-Asia-Oceania business segment.

Earlier Huhtamaki Foodservice Europe-Asia-Oceania introduced a single-use paper cup with digitalized connection.

About Huhtamaki:

The company is focused on manufacturing of foodservice packaging, flexible packaging and molded fiber packaging. It has 73 manufacturing units and 24 sales offices in 34 countries employing around 17,000 people worldwide. In 2016 our net sales totaled EUR 2.9 billion.

Source: Woodbizforum