Huhtamaki acquires the leading manufacturer of paper bags,


PRESS RELEASE HUHTAMÄKI OYJ 4/21/2021 AT 8:45 p.m.

Huhtamaki acquires the leading manufacturer of paper bags, wraps and folding carton packaging in China

Huhtamaki, one of the leading advanced manufacturers 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., one of the leading manufacturers of bags in paper, packaging and folding carton packaging in China. The company currently serves international quick service restaurants (QSRs) as well as national bakery chains. With this acquisition, Huhtamaki continues to strengthen its position as the leading supplier of foodservice packaging in Asia 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 around 200 people at its manufacturing facility 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 was around 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 by the opportunities this acquisition represents for our core business in China. Urbanization, 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 our growth in China in line with our strategy, ”said Eric Le Lay, president of Huhtamaki’s Fiber Foodservice EAO business segment.

The debt-free purchase price is 27 million euros. The acquisition is expected to be finalized by the end of the third quarter of 2021, after the fulfillment of certain customary closing conditions, after which the activity will be presented as part of the Foodservice Europe-Asia-Oceania reporting segment.

For more information, please contact:
Katariina Hietaranta, Head of Media Relations, tel. +358 10 686 7863

HUHTAMÄKI OYJ
Global communications

About Huhtamaki
Huhtamaki is a key global provider of sustainable packaging solutions for consumers around the world, promoting wellness and convenience. Our innovative products protect food and drink on the go and on the shelves, ensuring hygiene and safety, and helping 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 role in managing climate change, we are committed to setting scientific goals as part of the Science Based Targets initiative. Huhtamaki received the Silver Medal from EcoVadis 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 support our team of 18,200 employees make a difference where it matters. Our 2020 the 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. Find out how we protect food, people and the planet on www.huhtamaki.com.


Ethel J. Montes

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