Huhtamaki boosts production in UAE

Huhtamaki is combining production at its three flexible packaging production sites in the United Arab Emirates. Going forward, Huhtamaki will have two factories in the United Arab Emirates: one in Jebel Ali and one in Ras al Khaimah. At the same time, the factory in Ras al Khaimah will be expanded. The transition will take place gradually during 2024.

The aim of the merger is to optimize the production footprint, improve competitiveness and strengthen growth opportunities in the region. The changes are part of Huhtamaki's strategy execution program announced in November 2023, which is expected to improve profitability and generate savings of approximately EUR 100 million over the next three years.

The plan will not have a significant impact on the Group's net sales or result. In the second quarter of 2024, Huhtamaki will book costs related to the efficiency improvement measure of approximately EUR 4 million. They are recognized as an item affecting comparability.