German film manufacturer Infiana Group GmbH said Feb. 3 it sold its production facility in Brazil to local flexible packaging plastic producer Packing Group, in the midst of an economic recession that has led to acquisition opportunities in the South American country.
Infiana CEO Peter Wahsner said in a news release that there is potential in Brazil, but “the difficult economic backdrop prevents, even in the medium-term, the substitution of commodity products with premium products, which are our focus.”
Infiana, which produces specialty films for health care, personal care, construction, composites and pressure sensitive sectors, will continue to operate from its other three locations: Forchheim, Germany, Samutsakorn, Thailand, and Malvern, Pa.
Wahsner said the Brazilian unit had no synergies with the other sites, and the company's global business won't suffer any impact from the sale.
“In fact, by selling the Brazilian site we are taking another step towards positioning ourselves as experts in the engineered release films, process films and specialty films sectors,” he added.
Infiana changed its name from Huhtamäki Films in January 2015.
Brazil's Packing Group currently produces 242.2 million pounds of flexible packaging annually, and is one of the leading manufacturers in South America.
The company will increase production by 31.7 million pounds per year with the acquisition of the former Infiana unit, located in Brazil's northeastern state of Bahia, according to Paul André Reiter, Packing Group's commercial director.
Before the acquisition, Packing Group had six factories in Brazil and distribution centers in Germany, Spain and the United States.
Reiter said the company plans to increase sales abroad, and will be attentive to new acquisition opportunities in the flexible packaging sector in Brazil as the economic crisis continues.
“In general, many acquisition opportunities are coming up, without the need for us to look a lot for them,” he said.