Huhtamaki aims for US and European growth
worldwide operations, has unveiled a new organisation structure for
its European and North American operations, aimed at increasing its
business reach.
Huhtamaki, the Finnish based consumer packaging specialist with worldwide operations, has unveiled a new organisation structure for its European and North American operations, aimed at increasing its business reach.
Together the US and European markets account for 80 per cent of the company's business. The changes, the company says, are designed to promote growth through a more customer-oriented approach, more uniform product offerings, higher emphasis on innovation and the removal of regional structures in Europe.
The new organisation is based on divisions corresponding to the company's broad customer categories. In Europe, there will be three main divisions: consumer goods, food service and fresh foods. Each will be headed by a division president reporting to executive VP Europe, Henk Koekoek. The company's films business will remain a separate business unit also reporting to Koekoek.
The North American business will be conducted under two divisions: consumer foods as well as foodservice & retail. Each division presidents will report to executive VP Americas, Mark Staton. A total of eight business units have been set up to address the most important market segments. For the consumer goods division, these include frozen desserts, processed foods, non-foods and flexibles. For the foodservice & retail division, they are retail, national accounts, foodservice distribution and mexico. The North American technology and development function will be reinforced and will report to Staton, as will fresh foods, a new business initiative.
In the new organisation, each manufacturing unit will be assigned to the Division it primarily serves. Manufacturing units will become cost centres, transferring their products at cost to sales units, which bear profit responsibility, the company said.
"After three years of consolidation and focus on profit improvement through improved efficiencies, Huhtamaki is shifting gears to accelerate growth", said Huhtamaki's CEO Timo Peltola. "The new organisation is designed to promote growth through several mechanisms,"
"In Europe, major customers are adopting a pan-European mode of operation, and we have to comply with that trend. We will have dedicated sales teams for each division across Europe, promoting a broader and more uniform range of products in each market. This way, innovation will also spread quicker."
"In North America, the new business units will focus on business opportunities and accelerate innovation outside our traditional areas of strength. Overall, we will become more responsive to market dynamics and will be able to improve our customer service," Peltola commented.
Key appointments include: Karl Pfenninger as division president consumer goods Europe; Jan Lang as division president Food Service Europe and Hannu Kottonen as division president Fresh Foods Europe.
The new organisation will formally take effect on January 1, 2003.With operations in 36 countries, 16,000 employees and net sales of €2.4 billion in 2001, Huhtamaki is a leader in specialty consumer packaging. It is the world's largest manufacturer of rigid, thin-walled plastic and paper packaging, primarily for the food processing, food service and food distribution industries.
