Finnish packager Huhtamaki has acquired International Paper’s foodservice packaging operations in China for €15 million.
The purchase consists of two manufacturing units located in Shanghai and Tianjin, employing around 200 people.
The units to be acquired specialise in products similar to Huhtamaki’s current range in China, including paper cups for hot and cold beverages, food containers as well as snack food and ice-cream containers.
Net sales of the business to be acquired was €19 million in 2016. It will become part of Huhtamaki’s Foodservice Europe-Asia-Oceania business segment.
Huhtamaki CEO Jukka Moisio said: “I am very 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.”
The transaction is expected to be finalised within the next two months, subject to approval from Chinese authorities.
This is the latest expansion from Huhtamaki, which last year set up new manufacturing facilities in the US, Egypt and India.
The company employs around 17,300 people globally and last year recorded net sales of €2.9 billion.
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