Huhtamaki acquires Chinese packaging operations

Huhtamaki acquires Chinese packaging operations
Packaging company expands into China with International Paper’s foodservice packaging operations

Global packaging outfit Huhtamaki has acquired International Paper’s foodservice packaging operations in Eastern China.

Huhtamaki says with this expansion of its manufacturing footprint into the Eastern China region and strengthens its capacity and capability to serve customers operating in Northern China.

The acquisition comprises of two manufacturing units located in Shanghai and Tianjin, employing altogether approximately 200 employees.

The product range of the units to be acquired is similar to Huhtamaki's current product range in China, including paper cups for hot and cold beverages, food containers as well as snack food and ice-cream containers.

Jukka Moisio, CEO of Huhtamäki Oyj says, "I am pleased to announce this acquisition. It strengthens our operations in China significantly, both geographically and from a capacity point of view, allowing us to serve our customers even better in the future.

Eric Le Lay, executive VP, Foodservice Europe-Asia-Oceania says, "We have an ambitious growth strategy. This acquisition consolidates our business in North Asia and offers good possibilities to boost our growth. In addition, with the footprint expansion we improve our coverage of the vast market of China, which is good for our customers."

The net sales of the business to be acquired was approximately $30m in 2016. The debt free purchase price is $25m. The business will become part of Huhtamaki's Foodservice Europe-Asia-Oceania business segment. The transaction is expected to be finalised within two months, subject to completing applicable registration obligations with authorities in China. 

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