Huhtamaki hives off rigid plastic consumer goods business in South America

04-Jun-09

Consumer and specialty packaging company Huhtamaki (Finland) has sold its rigid plastic consumer goods business in Brazil to Dixie Toga S.A. and in Argentina to American Plast S.A., both subsidiaries of Bemis Company, Inc. The agreed value for the transaction is EUR 30 mln. The annual net sales of the divested business is some EUR 60 mln and it currently employs some 640 people. The divested business includes three manufacturing units in Brazil and one in Argentina. The units in Brazil serve mainly large multinational customers with dairy, ice cream and edible fats packaging, while the unit in Argentina serves local foodservice markets. However, the company said it will continue operating its flexibles and rough molded fiber packaging units in South America.