POLAND (News release) -- Huhtamaki has agreed to establish a joint venture with Smith Anderson Group Limited, one of Europe's leading paper bag suppliers, to manufacture and sell foodservice paper bags in Eastern Europe. The joint venture will start manufacturing paper bags at Huhtamaki's facility in Czeladz, Poland. Manufacturing operations are expected to begin during Q1 2018. Huhtamaki currently manufactures paper bags in Russia only 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.

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Travel & Living Expenses to be reimbursed along with an agreed upon daily per diem rate.

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