Huhtamaki’s Food Packaging Manufacturing Centre, Arizona, United States of America

Huhtamaki manufacturing centre

US-based food and beverage packaging company Huhtamaki plans to develop a new manufacturing and distribution centre in Arizona. The new facility will be developed by remodelling an existing facility that was purchased from Cohen Asset Management in Goodyear city in September 2016.

The facility will serve the foodservice packaging and retail tableware markets in west coast and south-west of Arizona. The investment is a part of Huhtamaki's strategy to manufacture core products specifically for the food and retail packaging sector.

Huhtamaki will invest approximately $100m in the facility, including for site purchase, over the next two years. It will expand the company's footprint and also improve its distribution capability in the region.

The project is anticipated to generate approximately 300 jobs in the region.

Strategic location for Huhtamaki's new plant

The new facility will be located in the city of Goodyear, which is roughly 30km west of downtown Phoenix, the capital city of Arizona.

Arizona was selected due to its proximity to major markets in southern California, allowing it to deliver the products in less than a day. Availability of talented workforce and modern infrastructure are also the reasons for finalising Goodyear as the location.

The city of Goodyear also presents a thriving environment for manufacturing businesses by offering convenient transportation services and enabling low-cost business operations.

Details of the new manufacturing centre

The existing facility in Goodyear is a 750,000ft² facility featuring open format space. Of the total area, approximately 70,000m² will be utilised as a distribution centre, which is expected to be functional from early 2017.

Construction works at the facility, which will involve modifications to the existing space, development of new infrastructure, improvements to the existing infrastructure and installation of production equipment, are scheduled to begin in the second quarter of 2017.

Commercial production at the plant will commence initially in late-2017 and accelerated in the coming years.

The new facility will be a 21st century work place where a feasible environment will be created for employees, customers and communities, says Huhtamaki.

Production at Huhtamaki's Goodyear manufacturing centre

The facility will produce a variety of food and retail packaging products such as paper drink cups, insulated hot cups, folding carton packaging, pressed paperboard plates, thermoformed plastic cups and lids.

Marketing commentary on Huhtamaki

Huhtamaki's North American segment specialises in food and beverage packaging. It has 17 production units in the US and Mexico with more than 3,400 employees and serves the local markets with Chinet brand disposable tableware, consumer goods, and food service packaging.

Headquartered in Espoo, Finland, the company has a total of 73 manufacturing units in 34 countries and employs more than 17,000 people.

The North American operations play a key role in maintaining the company's position as a global leader in the food packaging industry.