Finnish packaging company Huhtamaki has agreed to acquire International Paper’s foodservice packaging operations in China for €15m.
The acquisition will include two manufacturing units in Shanghai and Tianjin, which employ around 200 people.
The product range of the units to be purchased is same as the existing product range of Huhtamaki in China.
The to be acquired business generated net sales of €19m in 2016.Post acquisition, they r will come under Huhtamaki's Foodservice Europe-Asia-Oceania business segment.
Huhtamäki CEO Jukka Moisio said the acquisition strengthens the company’s operations in China significantly, both geographically and from a capacity point of view, allowing it to serve its customers even better in the future.
Foodservice Europe-Asia-Oceania executive vice president Eric Le Lay said: "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."
Huhtamäki, headquartered in Espoo, has 76 manufacturing units and 24 sales offices across 34 countries.
The firm has around 17300 employees and its net sales stood at €2.9m in 2016.
The company’s primary outputs include paper and plastic disposable tableware, such as cups, plates and containers for retail stores, caterers and vending operators, flexible packaging and labels for food and drink, pet food, pharmaceuticals, household and hygiene brands.