Huhtamaki, Finland, announced this past Friday (Sept. 16, 2016)) that the company supports the profitable growth of its foodservice business in China by investing in the expansion and modernization of its manufacturing unit in Guangzhou, South China. The total investment including site expansion, improvements in plant layout and new high-speed machinery is expected to be approximately EUR 15 million.

 

"With its growing population and rapid urbanization, China is an important market for our quick service and specialty coffee customers. With this investment, we will create a modern, efficient, high-capacity manufacturing unit and significantly improve our productivity and capability to serve our customers in the future," said CEO Jukka Moisio.

The investment follows Huhtamaki’s earlier announced actions to improve the competitiveness of its foodservice business in China and consolidate the South China manufacturing operations. The modernized unit will manufacture a defined core foodservice packaging product range. The majority of the investment will take place in the latter part of 2016 and early 2017, and the modernization is expected to be completed by the end of 2017.

"This major investment brings our operations in China into a new level and strengthens our position as a leading foodservice packaging provider in East Asia," said Eric Le Lay, EVP, Foodservice, Europe-Asia-Oceania business segment. "We’re pleased to invest in serving our customers better and helping them grow.