A BUSINESS has blamed the Brexit vote as the reason it has put its plans to expand on hold.
Huhtamaki is a multi-million pound global food packaging specialist which provides its products to leading businesses chains, such as Burger King.
I will be continuing to follow this matter closelyCaroline Dinenage
Its two main factories in the UK are in Gosport and it is a major employer in the area.
But the uncertainty of the economic climate and the devaluation of the pound following Britain voting to leave the European Union in June has forced the company to put its plans on the back burner.
A spokesperson for Huhtamaki said: ‘The post-Brexit period has caused a fair amount of uncertainty in both our market and on our cost base, caused by the sudden decline of sterling.
‘In light of this uncertainty, we’ve taken the prudent decision to postpone the Gosport site expansion project until we are a little clearer on what the longer-term post-Brexit impacts may be.’
Gosport MP Caroline Dinenage says that she has spoken to the managing director of Huhtamaki and has been reassured it is only a pause and not a cancellation.
Ms Dinenage said: ‘This is an understandable decision given current uncertainty in the market, but the importance of Huhtamaki’s contribution to our local economy cannot be understated.
‘Therefore, I will be continuing to follow this matter closely and will meet the managing director soon to offer my full support for Huhtamaki’s growth in Gosport.’
Councillor Mark Hook, leader of Gosport Borough Council, said he was disappointed by the decision but understood the reasoning behind it.