Huhtamaki Acquires Chinese Packaging Manufacturer
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Huhtamaki has entered into an agreement to acquire the assets of Jiangsu Hihio-Art Packaging Co. Ltd., a leading manufacturer of paper bags, wraps and folding carton packaging in China. The company currently serves international quick-service restaurants (QSR) as well as national bakery chains. With this acquisition, Huhtamaki continues to strengthen its position as the leading foodservice packaging provider in Asia and expands its product portfolio in China allowing it to better serve its existing and new customers in this exciting growth market.
Jiangsu Hihio-Art Packaging Co. Ltd. currently employs approximately 200 people in its manufacturing unit in Xuzhou city, Jiangsu. Employees will be offered an opportunity to continue to work for Huhtamaki after the transaction is closed. In 2020 the annual net sales of the privately owned business were approximately EUR 20 million. Following the acquisition, Huhtamaki will have altogether four manufacturing units in China: in Guangzhou, Shanghai, Tianjin, and Xuzhou.
“I am excited with the opportunities that this acquisition represents for our core business in China. Urbanization, middle class expansion and innovation into more sustainable packaging solutions drive growth across Asia. The acquisition of Jiangsu Hihio-Art Packaging Co. Ltd extends our product portfolio and access to new channels. This enables us to accelerate growth in China in line with our strategy,” says Eric Le Lay, President for Huhtamaki’s Fiber Foodservice EAO business segment.
