Packaging giant Amcor is acquiring Hebei Qite Packing Co, a flexible packaging products maker based in the Northern China province of Hebei, for $US28 million ($36 million).
The business generates sales of over $36m in flexible packaging products to large domestic customers within the dairy and food segments.
Amcor currently has a total of eleven flexible packaging plants in China, including two plants in close proximity to Qite in Northern China. Once fully integrated, Amcor will have an even stronger platform to grow the business in this region.
“Amcor continues to have substantial opportunities to grow our flexible packaging business in the Asian region,” Amcor’s Managing Director and CEO, Ron Delia said in a statement.
“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.”
Amcor has also completed the acquisition of North American-based Sonoco Products Company rigid plastics blow moulding operations.
The Sonoco business is a leading manufacturer of specialty rigid plastic containers for the pharmaceutical, personal care and specialty food segments with six production facilities in the United States and one in Canada.
The acquisition of Hebei Qite Packing Co remains subject to regulatory approvals.