Food packaging manufacturer Huhtamaki has launched a three-year programme to expedite its strategy implementation and support its profitability.

The new programme will provide material support to the company’s profitability through efficiency improvements.

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It expects to save €100m ($109.28m) through this scheme, which is expected to cost approximately €80m.

The move is in line with Huhtamaki’s updated 2030 growth strategy announced in March this year.

As part of the initiative, the company will optimise its manufacturing footprint and reduce input costs while scaling up global productivity.

Huhtamaki’s updated 2030 growth strategy focused on increasing profitability for its core business and innovating sustainable packaging solutions for additional growth.

In line with this strategy, the company has raised its long-term financial ambition to grow 5%-6% per year and expects to achieve adjusted earnings before interest and taxes (EBIT) of 10%-12% and an adjusted return of investment of 13%-15% in the long term.

Huhtamaki president and CEO Charles Héaulmé said: “Over the past two years considerable focus has gone into investing for capacity expansion in our core businesses and innovating in moulded fibre and recyclable flexible packaging with proprietary technology.

“Investments in our new innovation areas are starting to yield results as production capacity is being deployed, further driving our growth agenda.

“We have made good progress in the execution of our plans, and we see further potential in materially accelerating our financial performance. With this announced programme, we expect to make a clear step change, working on all productivity levers in our operations globally.”

Huhtamaki North America has also introduced a new line of sustainable moulded fibre-based cartons for use by egg producers in the US.