Huhtamäki has confirmed its plan to establish a joint venture with the Smith Anderson Group. According to the announcement, the joint venture will facilitate the production of paper bags at Huhtamäki’s facility in Czeladz, Poland. The factory is expected to be fully functional during the Q1, 2018.

 Huhtamäki being recognized as the major shareholder in this agreement will make efforts to consolidate the collaborative venture as a subsidiary of the Group’s financial reporting. The joint venture will be regarded as a part of the Foodservice Europe-Asia Oceania business segment; it will however not have a significant impact on the segments net sales in the early stages.

Huhtamäki business includes the manufacture of paper bags only in Russia, and this initiative further strengthens its position as the general source of paper bags to foodservice customers.