Huhtamaki could divest films business segment

20 July 2014 (Last Updated July 20th, 2014 18:30)

Consumer and speciality packaging manufacturer Huhtamaki could divest its films business segment in a bid to focus on food packaging.

Consumer and speciality packaging manufacturer Huhtamaki could divest its films business segment in a bid to focus on food packaging.

According to the company, the net sales of the segment have grown well in 2014 and its financial performance is also improving.

Huhtamaki's films segment, which reported sales of €187m in 2013, manufactures and sells films that are primarily used for technical applications in the label, adhesive tape, hygiene and health care industries.

The films are also used in industries such as building and construction, automotive, packaging and graphic arts.

From its manufacturing units in Europe, Asia, North America and South America, the segment serves global markets, according to the company.

"The company recently announced plans to acquire flexible packaging company Positive Packaging."

On 8 July, the company announced plans to acquire flexible packaging company Positive Packaging, which has nine manufacturing facilities in India and the United Arab Emirates as well as business in Africa and other export markets.

The company noted that the acquisition will enable it to continue to implement its strategy of growth, while strengthening its position in the fast-growing emerging markets.

Huhtamäki CEO Jukka Moisio said: "I am extremely pleased to announce this acquisition.

"It further enhances our position in India and provides us with much improved access to the fast growing markets of Africa and Middle East. Many of our global customers are investing heavily to grow in these markets, and now we are even better resourced to help them grow."