KUALA LUMPUR: Sustainable packaging solutions provider Huhtamaki on Monday announced that it is planning to close its production site in Port Klang by the end of the second quarter of 2024, affecting 93 employees.

The manufacturing facility which has been operational for about four years, was started with an investment of Euro 10 million in the second quarter of 2021.

The total investment included improvements in infrastructure, and machinery investments and installations.

During the first and second quarters of 2024, Huhtamaki will book closure-related costs in total of Euro 13 million.

The company in a press release said the move is part of a larger plan to consolidate the production footprint in the Fiber Foodservice Europe-Asia-Oceania segment.

Huhtamaki will continue to serve the region by retaining distribution center in Malaysia and Thailand as well as a sales office in Singapore.

The company said it will provide support for the impacted employees.

Huhtamaki said the consolidation plan is to optimise the manufacturing footprint, improve the competitiveness and strengthen the foundation for future growth in the Asia Pacific region.

The announced change is part of Huhtamaki's programme to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately Euro 100 million over the next three years.

Huhtamaki Group is headquartered in Espoo, Finland, and operates in 37 countries and 107 operating locations around the world. Its 2023 net sales totalled Euro 4.2 billion.

https://www.nst.com.my/business/corporate/2024/04/1042466/huhtamaki-close-manufacturing-plant-port-klang-end-q2-2024-93