Consumer packaging manufacturer Huhtamaki (Helsinki / Finland; www.huhtamaki.com) is to stop production of rigid packaging in the UK because of declining volumes and continued increases in manufacturing and energy costs. The decision follows a strategic review of the rigid consumer goods business announced in January 2008 (see Plasteurope.com of 07.01.2008). The business is loss-making, despite annual sales of some EUR 30m. Costs related to the closures will have a one-off effect of EUR 8m, but will provide an earnings improvement of EUR 3-4m annually.

Huhtamaki plans to start a consultation process with the 160 employees affected at the plants at Gosport and Portadown. It will continue to supply UK customers for mainly paper-based specialty consumer packaging from other facilities. Manufacturing of foodservice products will continue at Gosport. The future of the Portadown plant is unknown, as the Finnish company had sold the facility to an unnamed buyer and was continuing production under a leasing deal as it carried out its strategic review.