The JV will start manufacturing paper bags at Huhtamaki's facility in Czeladz, Poland. Converting operations are expected to begin this quarter. Huhtamaki currently makes paper bags only in Russia, and this initiative further strengthens its position as a one-stop-shop to foodservice customers.
As the majority shareholder, Huhtamaki will consolidate the joint-venture company as a subsidiary in the Group's financial reporting. The business will be reported as part of the Foodservice Europe-Asia-Oceania business segment but will not have a significant impact on the segment's net sales initially.