Huhtamäki to Build Paperboard Packaging Plant, Distribution Center in Ohio
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Huhtamäki Oyj (Finland) reports that its Huhtamaki Inc. subsidiary, Desoto, Kan., USA, has purchased a manufacturing facility in Batavia, Ohio, USA, to set up a new state-of-the-art manufacturing and distribution unit to serve customers in the foodservice and retail industries. The new facility, formerly owned by the Ford Motor Co. and which also houses the University of Cincinnati's UC East Campus, will initially produce paper drink cups and distribute products made throughout the Huhtamaki manufacturing network.
With the purchase, Huhtamaki continues its series of investments in expanding and strengthening its disposable product offering and capability in the U.S. "With this investment, we begin to fully leverage our paperboard packaging expertise and our global foodservice position also in the U.S.," said Jukka Moisio, CEO of Huhtamäki Oyj.
The total investment, including purchase of the site (located 25 miles east of Cincinnati), improvements in infrastructure, and machinery investments to set up capacity, will be approximately $60 million (EUR 45 million) over the next three years. The majority of the investment will take place this year. Huhtamaki plans to begin operations in Batavia during the second half of this year and expects to create approximately 237 jobs by the end of 2016.
The site is strategically located in Batavia, with excellent rail and highway access and proximity to major foodservice markets. The optimal location of the site will enable Huhtamaki to better serve its U.S. foodservice and retail customers.
"By setting up this world class disposables manufacturing unit in Batavia, we are creating a platform to expand operations as we grow," says Clay Dunn, EVP, North America. "In addition to building a plant with optimal material and workflows, we will be able to optimize the product range in existing manufacturing units. Our initial focus in Batavia will be on paper cups, which are the core of Huhtamaki's global foodservice offering," he noted.
"Today's announcement caps an exciting 18-month period in which we completed three acquisitions and added seven production facilities in the U.S. to expand our ability to offer customers a broad product line and coast-to-coast coverage from 17 North American plants," Dunn added.
"The open space configuration is ideally suited for world-class capability in productivity and material flow," Fred Betzen, VP of operations, Huhtamaki North America, said. "This new facility has the space and infrastructure to meet growing customer needs for additional products and production volume and can be expanded over the next several years."
Huhtamaki Group is a producer of consumer and specialty packaging with 2011 net sales of EUR 2 billion. Foodservice and consumer goods markets are served by approximately 14,000 people in 64 manufacturing units and several sales offices in 31 countries.
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