Huhtamaki to close Malaysia production site

Bid to consolidate its production footprint

April 25, 2024

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Huhtamaki, a global provider of sustainable packaging solutions for consumers, is planning to consolidate the production footprint in the Fiber Foodservice Europe-Asia-Oceania segment by closing its production site in Port Klang, Malaysia, by the end of Q2 2024.

Huhtamaki will continue to serve the region by retaining distribution center in Malaysia and Thailand as well as a sales office in Singapore. The decision affects 93 employees. Huhtamaki will provide support for the impacted employees.

The aim of the consolidation is to optimize 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 program to accelerate strategy implementation published in November 2023 and expected to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately 100 million Euros over the next three years.

The Port Klang site planned to be closed does not represent a material share of the sales or profits of Huhtamaki. During the first and second quarters of 2024, Huhtamaki will book closure-related costs in total of approximately 13 million Euros. The costs will be booked as items affecting comparability.

Huhtamaki’s products protect on-the-go and on-the-shelf food and beverages, and personal care products, ensuring hygiene and safety, driving accessibility and affordability, and helping prevent food waste.

Just in 2021, in order to better serve its customers and respond to future growth of the sector in Southeast Asia, the company had transferred its Malaysian manufacturing base from Penang to Port Klang, Selangor State, in Malaysia.

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