16.07.2013

Amcor announces China flexible packaging acquisition

Amcor announces today an agreement to acquire the flexible packaging operations of Jiangsu Shenda Group for RMB350 million, said Amcor in its press release.

The acquired business has sales of approximately RMB440 million and two plants in the Jiangsu province in Eastern China. Two thirds of it sales are to the pharmaceutical, snacks and culinary end markets. Following the acquisition Amcor will be the market leader in Eastern China with a strong position in both film manufacturing and conversion. The acquired business is a strong fit with Amcor’s exiting plant in Jiangsu province and enables sharing of overheads, optimisation of production across the sites and operating improvements through sharing of best practice. These opportunities are expected to deliver cost synergy benefits of more than 5% of sales.

Amcor’s Managing Director and CEO, Mr Ken MacKenzie said: "Continued strong growth in consumer spending makes China one of the most attractive markets globally. Amcor has a strong and successful position in the Chinese flexible packaging market with nine plants, covering all the key regions and sales of over Australian dollars 400 million". "This acquisition establishes Amcor as the market leader in Eastern China, a region that represents approximately 40% of China’s GDP. The busness is a strong fit with our existing operations and offers considerable synergy opportunities."

The agreement is subject to regulatory and other usual conditions and is expected to close in the coming months. As MRC wrote earlier, the rising Australian dollar and cost pressures have pushed global packaging manufacturer Amcor Ltd. to shut two manufacturing sites and to downsize another site. Amcor Limited is an Australian-based multinational packaging company. It operates manufacturing plants in 42 countries. It is the world's largest manufacturer of plastic bottles.


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