Third Quarter 2017 Summary: • Reported sales increased 6% over the prior year driven by 3% core growth and a 3% favorable impact from exchange rates • Each business segment achieved core sales growth • Lower custom tooling sales negatively impacted the sales growth by 2% • Reported net income (9% of net sales) increased to $54 million (+1%) • EBITDA (19% of net sales) decreased to $118 million (-4%) • Profit margins were negatively impacted by operational challenges at our decorative facility in Europe, higher professional fees, raw material cost increases and certain currency transaction losses. Click Read More below for additional information.
Huhtamaki inaugurates its new, state-of-the-art flexible packaging unit in Egypt today. The investment marks the company’s entry into manufacturing flexible packaging in Africa.
The greenfield is located in the greater Cairo area and will serve Huhtamaki’s flexible packaging customers in Egypt as well as export its products into other African countries and Europe. The manufacturing unit is built on a land area of almost 37,000 square meters, with ample space for future expansion. Production has started this spring and the facility is expected to employ approximately 250 employees.
“The Egyptian market is sizeable, and with the rapid population growth in Africa we expect future growth opportunities both for us and our customers. Until now we have served flexible packaging customers in Egypt from our units in the United Arab Emirates and India. With the new plant we can offer our current and new customers – both in Africa and Europe – the same top quality with shorter lead times,” says Olli Koponen, EVP Flexible Packaging.
The new manufacturing unit is owned and operated as a joint venture of which Huhtamaki owns 75%. The remaining 25% is owned by Mr. Ayman Korra, who has been Huhtamaki’s joint venture partner in the Egyptian fiber packaging business since 2003. The current investment, including land purchase, facility construction and machinery, is expected to be approx. EUR 23 million with Huhtamaki share at approx. EUR 17 million.