Amcor, the Australian packaging giant, is expanding its flexible packaging operations in China with a CNY185m (£24.7m) deal to buy Hebei Qite Packing.
The single-plant operation in Hebei, in the north of the country, has annual sales of more than $28m (£25.3m) and serves domestic food and dairy markets, Amcor said.Amcor chief executive Ron Delia said his company continued to have substantial opportunities to grow its flexible packaging business in the Asian region.
“Globally and especially within Asia, China is a very attractive growth market for flexible packaging. This acquisition will enhance our already attractive platform for growth with new and existing customers in the important Northern region.”
The purchase will give Amcor 11 flexible packaging manufacturing sites in China, including two locations “in close proximity to Qite,” Amcor said.“Once fully integrated, Amcor will have an even stronger platform to grow the business in this region.
“Inclusive of synergy benefits this acquisition will generate strong returns for shareholders within three years,” the firm said in a statement.
The acquisition has to receive regulatory approvals, it added.
