Huhtamaki kicks off New Year with FIOMO acquisition and egg packaging expansion

Huhtamäki Oyj's subsidiary is to acquire FIOMO, which manufactures flexible packaging foils and labels in the Czech Republic, expected to be completed in Q1, 2016.

The firm has also spent £5m on its molded fiber packaging plant in Lurgan, Northern Ireland, creating 12 full-time jobs, which makes molded fiber packaging for egg cartons, egg trays and cup carriers.

Molded fiber product range

It is expanding its manufacturing capacity to meet the needs of the growing egg market in the UK and Ireland and to expand its product range within the molded fiber sector.

The company claims its growth is due to increased egg consumption per head of capita in the UK and a focus on healthy eating, with lower price points, and egg sales such as Free Range.

Of the acquisition, Olli Koponen, executive VP, Flexible Packaging, Huhtamaki, said it is expanding its flexible packaging manufacturing footprint to Eastern Europe and can offer off-set printing for smaller production runs for its customers in Europe.

"The European flexible packaging market is experiencing a positive momentum, with increasing versatility in customers' needs,” said Koponen.

FIOMO's manufacturing capabilities complement our offering and ensure better resourcing and faster response when serving our customers across Europe."

FIOMO, which employs 120 people at its facility near Prague, saw annual net sales of approximately €21m in 2014. The debt-free purchase price is approximately €28m.

Customers include Nestle, Pepsi, Muller & Danone

Customers include Nestle, Pepsi, Muller and Danone to name a few.The unit will become part of Huhtamaki's Flexible Packaging business segment.

Huhtamaki has three manufacturing units in the UK: a molded fiber packaging site in Lurgan and two foodservice packaging facilities in Gosport and Blackburn.

In November 2015, Huhtamaki announced a £7m ($10.6m) investment to develop and expand its foodservice packaging manufacturing unit in Gosport, UK.

The expansion next to existing facilities is expected to be completed by March 2017.

Insulated paper cup forming machines and a PET tumbler manufacturing line with capabilities to process both regular and recycled PET have already been installed at the Gosport facility.