Huhtamaki (Helsinki / Finland; www.huhtamaki.com) plans to close its loss-making flexible packaging production in Malvern, Pennsylvania / USA. Films production at the site, however, is profitable and will continue, the packaging producer said. Huhtamaki said it is closing the flexibles unit, which mainly produces retort pouches, because of a decline in the market share of wet pet food in North America. The company will continue to serve its North American customers with flexible packaging from its flexible packaging production plants in other regions.

About 80 of Huhtamaki’s 160 employees at the Malvern site will be impacted by the closure. The company will take an approximately EUR 18m one-time charge in the fourth quarter of 2008 to discontinue the operation. CEO Jukka Moisio said the decision to dedicate the Malvern site to films production “will support the growth of our films business in North America and strengthen our position to enter new markets and applications from a local supply base."