Finnish packaging group Huhtamaki (Espoo; www.huhtamaki.com) has initiated the introduction of efficiency measures with the aim of improving the competitiveness of its foodservice Europe-Asia-Oceania segment, which increased in size considerably during 2012 with the acquisition of Chinese disposable packaging manufacturer Josco (Hong Kong; www.josco.com.hk). Discussions with employees have begun in the group’s foodservice units in Hämeenlinna / Finland and Epping / South Africa. Additionally, a cost saving programme has been implemented in the company’s films business segment.

A non-recurring charge of around EUR 10m will be recorded in 2013 to cover the costs of the measures, the majority of which will be booked in the first half of the year. Targeted annual cost savings are EUR 6m

Huhtamaki reported an operating profit (EBIT) of EUR 162m in 2012, up from EUR 121m in the previous year. Sales increased by 14% year-on-year to EUR 2.33 bn. The foodservice Europe-Asia-Oceania segment reported operating profit up 66% year-on-year at EUR 34.6m on sales up 15% at EUR 599m. Operating profit before non-recurring items was EUR 20m, with the acquired Josco units contributing positively to earnings growth – see Plasteurope.com of 19.02.2013.

Josco was acquired in April 2012 for EUR 46m (see Plasteurope.com of 26.03.2012). The acquired business was then consolidated into Huhtamaki’s foodservice Europe-Asia-Oceania segment on 1 April 2012.