Dec 15, 2004. /Lesprom Network/. Huhtamaki, the worldwide consumer packaging manufacturer based in Finland, plans to execute a restructuring program over the next two years in order to improve efficiency and cost base, especially in its rigid packaging operations. As a first step, the company's Board of Directors has authorized management to initiate local negotiations in certain European countries. A provision of approx. EUR 46 million will be expensed against the company's 2004 operating income. The actual cash impact in 2005 will be roughly EUR 16 million. The corresponding annualized cost savings of approx. EUR 10 million are expected to materialize in full from 2006 onwards. A second, more sizeable step of the restructuring program will be announced during the first half of 2005. Huhtamaki's CEO Heikki Takanen comments the restructuring plans as follows: "Our initial priority is to improve the efficiency and cost base of existing operations. This is a prerequisite for further strategic development. The restructuring plans will not hamper the company's ability to pay dividend in relation to its underlying business performance." With net sales exceeding EUR 2 billion, 15,500 employees and operations in 36 countries worldwide, Huhtamaki ranks among the world's leading manufacturers of rigid and flexible consumer packaging.