Huhtamaki, a global sustainable packaging solutions provider, has announced the closure of its production facility in Port Klang, Malaysia, as part of its strategy to consolidate its production footprint. 

The company said that it is planning to combine production in the Fiber Foodservice Europe-Asia-Oceania segment.  

The closure is scheduled to occur by the end of the second quarter (Q2) of 2024.  

Huhtamaki said the consolidation will streamline its manufacturing footprint, enhance competitiveness and boost the “foundation for future growth in the Asia Pacific region”.  

The consolidation will not leave the region unserved, as Huhtamaki plans to maintain its distribution centres in Malaysia and Thailand, along with a sales office in Singapore.  

However, the closure will impact 93 employees, for whom Huhtamaki has pledged to provide support. 

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The consolidation is a strategic step in Huhtamaki’s broader programme to accelerate strategy implementation, which was announced in November 2023.  

The company anticipates that these efficiency improvements will contribute to savings of approximately €100m ($106m) over the next three years. 

Although the Port Klang site is not a significant contributor to Huhtamaki’s sales or profits, the company expects to incur closure-related costs of approximately €13m during Q1 and Q2 2024.  

The company will record these costs as items affecting comparability. 

This announcement comes on the heels of Huhtamaki’s previous declaration to consolidate its production within the same segment in China.  

The company is set to shut down its Tianjin and Shanghai production sites by the end of Q2 2024 as part of this consolidation effort.