Huhtamaki to acquire International Paper foodservice packaging operations in China for $17.1m
With the acquisition, Huhtamaki expands its manufacturing footprint into the Eastern China region, which it said will strengthen its capacity and capability to serve customers operating in Northern China.
Jukka Moisio, CEO of Huhtamäki said the deal reinforces the company’s operations in China significantly, both geographically and in terms of capacity.
The acquisition includes two manufacturing units, in Shanghai and Tianjin, with a workforce of around 200.
Similar product range
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.
The net sales of the business to be acquired was approximately €19m ($21.7m) in 2016.
The business will become part of Huhtamaki's Foodservice Europe-Asia-Oceania business segment. The transaction is expected to be finalized within one to two months, subject to completing applicable registration obligations with authorities in China.
In April, Huhtamaki agreed to sell one of its manufacturing facilities and the related land usage rights in Guangzhou, China, to Guangzhou Yashao Investment Co. Ltd.
At the time, Huhtamaki said the €14m ($16m) sale was part of the ongoing consolidation of its foodservice packaging manufacturing operations in South China.
The transfer of manufacturing activities into one unit is expected to be completed and the sold facility vacated during the third quarter of 2017.
Huhtamaki, based in Espoo, Finland, has 76 manufacturing units and 24 sales offices in 34 countries. In 2016, net sales totaled €2.9bn ($3.3bn).