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January 28, 2016 01:00 AM

Amcor buys Chinese film unit from British Polythene

Kate Tilley
Correspondent
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    BPI's former Chinese operation.

    Melbourne, Australia — Australian packaging company Amcor Ltd. is buying BPI China, the Chinese subsidiary of British Polythene Industries plc, for US$13 million.

    An Amcor statement said BPI China has one plant in Xinhui, in southern China, with state-of-the-art blown film and flexographic printing lines. It produces flexible packaging products for export and domestic customers.

    Amcor has 10 flexible packaging plants in China, including four in southern China.

    Amcor said the acquisition will strengthen Amcor's leadership position in southern

    China and complement its existing business by providing additional scale and talent. “It will broaden Amcor's capabilities in China to include flexographic printing and reduce future capital expenditure requirements.”

    Amcor Managing Director and CEO Ron Delia said: “China continues to be an attractive market for flexible packaging globally and this is an excellent opportunity to support our continued expansion in the important southern region.”

    British Polythene Industries (BPI), headquartered in Greenock, Scotland, said BPI China's product range includes bakery and fresh produce packaging for the retail market, disposable aprons for the health-care sector and high-performance stretch film for transit protection. Its website said customers include “major name clients” in Europe, North America and Australasia, and companies with significant offshore operations in China.

    BPI did not respond to Plastics News' request for comment on its reasons for selling the China subsidiary.

    BPI China's website, which does not yet acknowledge the ownership change, said BPI China was established in 1993 and has an annual capacity of 12,000 tons.

    Amcor manufactures rigid and flexible plastic packaging products for the food, beverage, health care, home and personal care, and tobacco packaging industries.

    It has annual sales of US$10 billion and employs 29,000 across more than 180 sites in 43 countries.

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