Huhtamaki, a leading packaging company, has decided to consolidate its production operations within the Flexible Packaging segment in Europe. As a result, the company will be closing its Flexible Packaging production facility located in Prague, Czech Republic. Over the second half of the year, all production and supporting activities at the facility will be gradually scaled down, with the complete closure of operations scheduled to be finalized by March 31, 2024. Production will be transferred gradually to other Huhtamaki manufacturing sites.
This decision will impact all 198 employees at the Prague facility. Huhtamaki is committed to supporting its employees during this transition, offering assistance such as providing information about job vacancies in other Huhtamaki units both in the Czech Republic and across Europe.
It's important to note that Huhtamaki currently operates two manufacturing units in the Czech Republic. The closure of the Prague site will not affect the Fiber packaging operations in Okrisky, which currently employs 274 individuals.
The Flexible Packaging Prague facility represents a minor portion of Huhtamaki's overall sales and profits. However, the company will incur closure-related costs of approximately EUR 35 million in the second quarter of 2023. These costs will be recorded as items affecting comparability and will mainly consist of non-cash items. While the closure process unfolds, it is anticipated that the decision will ultimately contribute to the company's long-term objectives.
