Finnish packaging manufacturer Huhtamaki, which specializes in food and beverage packaging, announced that it has reached an agreement to acquire the assets of Jiangsu Hihio-Art Packaging, a Chinese producer of paper bags, packaging, and folding cartons.
The company, which employs about 200 people at its manufacturing facility in Xuzhou City, has international fast food players and national bakery chains as its main customers. In 2020, Jiangsu Hihio-Art Packaging achieved sales of 20 million euros.
Finnish Huhtamaki's fourth factory in China
With this new acquisition, the Finnish packaging manufacturer Huhtamaki strengthens its position as a supplier of food service packaging in Asia and now has four production facilities in China: in Guangzhou, Shanghai, Tianjin and Xuzhou.
Eric Le Lay, president of Huhtamaki's Fibre Foodservice EAO business segment, says of the acquisition:
"Urbanization, an expanding middle class and innovation in more sustainable packaging solutions are driving growth in Asia. The acquisition of Jiangsu Hihio-Art Packaging Co. Ltd expands our product portfolio and access to new channels. This allows us to accelerate growth in China in line with our strategy.»
The amount of this acquisition, which is expected to be finalized by the end of the third quarter of 2021, is 27 million euros. Huhtamaki is currently present in 36 countries and 81 locations worldwide.
