Huhtamäki Oyj has initiated further efficiency enhancing measures to improve the competitiveness of its Foodservice Europe-Asia-Oceania business segment. Employee cooperation procedures have been initiated within the Group's Foodservice unit in Viul, Norway, with a view to close the plant. In addition the Foodservice plastics unit in Alf, Germany, is being reorganized to improve the segment's competitiveness and focus on supporting its core businesses.
The potential closure of the Viul plant in Norway, currently manufacturing Chinet® plates and bowls for the European market, is planned to take place during the third quarter of 2013 and would affect approximately 55 people. The manufacturing of Chinet® plates and bowls is planned to be transferred to the Group's other units. The planned transfer will not affect the supply of Chinet® products in Europe and customers will continue to be served by their local sales teams. Huhtamaki will also continue to serve its customers locally in Norway as the sales, customer service and warehousing functions in Norway are planned to be retained.
The Foodservice plastics unit in Alf, Germany, is being reorganized to improve the segment's competitiveness in serving its core quick service, catering and vending customers. The unit will have a growing importance in supporting the Group's core foodservice range of paper articles with complementary plastic items. The reorganization will result in certain asset write-offs and it is expected to affect some employees.
To cover the costs of the above activities a one-time charge of approximately EUR 8 million will be booked during 2013 in the Foodservice Europe-Asia-Oceania business segment. Approximately EUR 4 million of the costs are cash costs and the outflow is expected to take place in 2013. These restructuring activities are expected to result in savings of approximately EUR 4 million in 2014.
Furthermore, a strategic review has been initiated in the Group's Foodservice plastics unit in Italy. The unit is loss making.
