Huhtamaki has established a joint venture with Scottish paper bag supplier Smith Anderson to manufacture and sell foodservice paper bags in Eastern Europe.
The joint venture will start making paper bags at Huhtamaki’s facility in Czeladz, Poland. Huhtamaki currently manufactures paper bags in Russia only and this initiative aims to strengthens its position as a one-stop-shop for foodservice customers.
As the majority shareholder, Huhtamaki will consolidate the joint venture company as a subsidiary in the group’s financial reporting. The business will be reported as part of the Foodservice Europe-Asia-Oceania segment, but it said it will not have a significant impact on the segment’s net sales initially.
Last year, Huhtamaki announced an €11 million investment to build a a new manufacturing facility in Hämeenlinna, Finland, to serve its customers in the Baltic and Nordic countries.
Construction work is planned to begin during spring 2018 and the new facility is expected to begin operations in spring 2019.
The Finnish company also aims to tap into the growing popularity of food to go with a new range of folding packaging for hot and cold products.
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