PRESS RELEASE HUHTAMÄKI OYJ 21.4.2021 AT 20:45
Huhtamaki acquires leading paper bag manufacturer, wraps and folding carton packaging in China
Huhtamaki, a leading and advanced manufacturer of sustainable packaging solutions for consumers around the world, has entered into an agreement to acquire the assets of Jiangsu Hihio-Art Packaging Co. Ltd., a leading manufacturer of plastic bags. paper, packaging 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 Asia’s leading foodservice packaging supplier and expands its product portfolio in China, enabling it to better serve existing and new customers in this growing market.
Jiangsu Hihio-Art Packaging Co.Ltd. currently employs approximately 200 people at its manufacturing unit in Xuzhou City, Jiangsu. Employees will be offered the option to continue working for Huhtamaki after the transaction closes. In 2020, the annual net turnover of the private company amounted to approximately 20 million euros. Following the acquisition, Huhtamaki will have a total of four manufacturing units in China: in Guangzhou, Shanghai, Tianjin and Xuzhou.
“I am excited about the opportunities this acquisition represents for our core business in China. Urbanization, growing 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,” said Eric Le Lay, President of Huhtamaki’s Fiber Foodservice EAO Business Line.
The purchase price without debt is 27 million euros. The acquisition is expected to be completed by the end of the third quarter of 2021, following the satisfaction of certain customary closing conditions, after which the business will be reported under the Europe-Asia-Oceania Foodservice reporting segment.
For more information, please contact:
Katariina Hietaranta, Media Relations Manager, tel. +358 10 686 7863
Huhtamaki is a key global provider of sustainable packaging solutions for consumers around the world, promoting well-being and convenience. Our innovative products protect food and drink on the go and on the shelf, ensuring hygiene and safety, and helping to prevent food waste. We embed sustainability in everything we do. We are committed to achieving carbon neutral production and designing all of our products to be recyclable, compostable or reusable by 2030.
We participate in the United Nations Global Compact and since 2020 we have received an MSCI ESG rating of A, on a scale of AAA ─ CCC. To play our part in managing climate change, we have committed to setting science-based targets under the Science Based Targets initiative. Huhtamaki was awarded the EcoVadis Silver Medal for its sustainability performance.
With 100 years of history and a strong Nordic heritage, we operate in 36 countries and 81 sites around the world. Our Care Dare Deliver values guide our decisions and help our team of 18 people,200 employees make the difference where it counts. Our 2020 net turnover amounted to 3 euros.3 billion. The Huhtamaki Group is headquartered in Espoo, Finland, and our parent company, Huhtamäki Oyj, is listed on Nasdaq Helsinki Ltd. Discover how we protect food, people and the planet on www.huhtamaki.com.