Huhtamaki to consolidate its flexible packaging footprint in Europe with closure of the manufacturing site in Prague, Czech Republic

Huhtamaki has made the decision to consolidate the production footprint of its Flexible Packaging segment in Europe and will be closing its Flexible Packaging production facility in Prague, Czech Republic. All production and supporting activities at the facility will be scaled down during the second half of the year, with the closure of the operations completed by March 31, 2024. Production will gradually be transferred to Huhtamaki’s other manufacturing sites.

The decision affects all 198 employees in the site. Huhtamaki will support its employees during this period, including providing information about vacancies in other Huhtamaki units in the Czech Republic and across Europe.

Huhtamaki currently has two manufacturing units in Czech Republic. The closure of the Prague site does not affect the Fiber packaging operations in Okrisky which today employs 274 people.

The Flexible Packaging Prague facility does not represent a material share of the sales or profits of Huhtamaki. Huhtamaki will book closure-related costs of approximately EUR 35 million in the second quarter of 2023. The costs will be booked as items affecting comparability and are mostly non-cash items. Over time, the closure is expected to be cash positive and improve our competitiveness in Europe.
https://www.huhtamaki.com/en/media/media/press-release/2023/huhtamaki-to-consolidate-its-flexible-packaging-footprint-in-europe-with-closure-of-the-manufacturing-site-in-prague-czech-republic-/

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