Plastics Capital plc, the London-based stock market-listed specialist plastics group, has announced that it has bought a Chinese manufacturer of creasing matrix for approximately £2.7 million.
Plastics Capital said it had acquired Beijing Higher Shengli Printing Science & Technology Co. Ltd. as part of its strategy of building shareholder value via deals to acquire niche plastics products businesses.
The consideration for the deal was raised via share issue of 2.7 million shares in Plastics Capital.
The Chinese firm employs 50 and, according to Plastics Capital, has a 30 percent share of the £5 million-a-year domestic Chinese market for creasing matrix, a plastic strip used in the folding of cardboard and other packaging products.
Faisal Rahmatallah, Plastics Capital's chairman and chief executive, said Shengli would fit well with his company's existing creasing matrix business, Wellingborough, England-based C&T Matrix Ltd.
"China is one of the world's fastest growing markets for creasing matrix thanks to the increasing sophistication of local packaging producers and an increase in demand within the country for consumer goods.
"Shengli is the market leader in China and has developed a strong brand and excellent distribution network across the entire region."