Finland-based food and drink packaging specialist Huhtamaki is planning to establish three new flexible packaging manufacturing units in India and Egypt.

The largest unit will be set up in a greater Cairo area in Egypt, while the other two units, including one label manufacturing facility, will be based in India’s North Eastern region.

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To be built with an investment of around €23m, the manufacturing unit in Egypt will be owned and operated as a joint venture, with Huhtamaki owning a 75% share.

"With its rapid population growth Africa is expected to offer sizable future growth opportunities to us and our customers."

Huhtamaki will bear around €17m of the total investment, with most of the investment expected to be made during 2016-2017.

With around 300 employees, the unit is expected to start production by 2018.

Once fully operational, the facility will serve both global and local flexible packaging customers as well as export its products abroad.

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Huhtamäki CEO Jukka Moisio said: "The investment in Egypt marks our entry into manufacturing flexible packaging in Africa. With its rapid population growth Africa is expected to offer sizable future growth opportunities to us and our customers.

"With the investments in India we will further improve our geographic coverage of the country and our ability to service customers in food and pharma industries.

“After these additions our total number of manufacturing units in India grows to 17."

With the two new units, to be located in two Indian states of Assam and Sikkim, Huhtamäki aims to serve the entire North East India region.

Both units are expected to become operational during the first half of 2017.

Huhtamäki will also relocate its existing label manufacturing unit in Mumbai, India, to a new facility.

The combined value of investments to be made in India is expected to be around €9m.

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