Dedication to
businesses with competitive advantage
Strategic Strongholds:
Smooth and Rough Molded Fiber
Release Films
Flexible Packaging
Foodservice Paper Cups
Other Paper Forming Products
In 2008, Huhtamaki continued to pursue a strategy focusing on packaging
operations where it has a competitive advantage, a good market
position, and which create value for Huhtamaki and its customers.
An update of the strategy defined the business strongholds to be smooth
and rough molded fiber products, release films, flexible packaging,
foodservice led by paper cups, and other products based on Huhtamaki’s
paper forming technology. At the same time, a review of the rigid
plastic consumer goods operations started. Huhtamaki’s reporting
segments will be updated accordingly starting in 2009. Reorganization
and closures of production in Europe and North America as well as
inaugurations of new flexible and foodservice packaging production in
Asia have supported the strategy in 2008.
Strong cash flow
In the short term, emphasis will be on debt reduction and core
stronghold businesses will focus on organic development targeting
approximately 5% growth year-on-year. Improving cash flow is also an
important focus area where significant progress was made in 2008.
Huhtamaki’s financial targets, return on investment (ROI) at 15% and
dividend payout ratio of 40%, remain unchanged.
