Huhtamaki may sell rigid plastics business

Huhtamaki has announced it is considering the sale of its rigid plastics business.

The announcement follows the news that it will separate its rigid plastics business into a separate reporting segment from 1 January 2009.

Huhtamaki chief executive Jukka Moisio said the company is reviewing different options for its rigid plastics business and "one possible outcome is a sale".

The Finnish company has already ceased production of rigid plastic consumer goods packaging in Portadown and Gosport in the UK, owing to volume decline and increases in manufacturing and energy costs.

However, the Gosport site continues to produce packaging for the foodservice industry.

In August Huhtamaki entered into negotiations with 700 staff at its Hämeenlinna plant in Finland as part of its continuing review of its rigid plastics business.

The company previously said it would close its rigid packaging site in Karlholmsbruk, Sweden by the end of the year.

www.packagingnews.co.uk

( Source: PackagingNews )