Huhtamäki Oyj, Espoo, Finland, announced Tuesday (March 22) that it will expand and revise its long-standing joint venture relationship in Arabian Paper Products Co. (APPCO) with Olayan Saudi Holding Co. (OSHCO). Huhtamaki's ownership in APPCO will increase to 50% and the operative territory of APPCO expands from the Gulf Cooperation Council (GCC) countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates to include also Middle Eastern and Northern African countries of Algeria, Egypt, Iran, Iraq, Lebanon, Libya, Morocco, Pakistan, Palestine, Sudan, Syria, Tunisia, and Yemen. At the same time APPCO's product range is broadened to include all Huhtamaki Food Service Europe-Asia-Oceania business segment's food packaging products.

The revised Shareholders' Agreement relating to APPCO enables Huhtamaki to consolidate the joint venture company as a subsidiary in the group's financial reporting as of April 1, 2016. As a result of the transaction, a non-recurring gain of approximately EUR 8 million will be booked in the second quarter of 2016 in the Foodservice Europe-Asia-Oceania business segment. The additional shares are acquired at a price of approximately EUR 4 million.

APPCO is a joint venture company between Huhtamaki and OSHCO, operating in Al-Khobar, Saudi Arabia since 1985. The annual net sales of the company in 2015 were approximately EUR 24 million. Earlier Huhtamaki ownership in APPCO was 40%. With the expansion of the joint venture relationship, Huhtamaki continues to implement its growth strategy and strengthens its position in Middle-East and North Africa.

Huhtamaki is a global specialist in packaging for food and drink, with a network of 71 manufacturing units and 23 sales offices in 34 countries. The company has  approximately 15,800 employees, and its net sales in  2015 totaled EUR 2.7 billion. 

 

For further information, please contact Jukka Moisio, CEO, tel. +358 10 686 7801, or Thomas Geust, CFO, tel. +358 10 686 7880.