Innovia Group, the Cumbria, England-based manufacturer of high-tech films, has announced the sale of its Cellophane business to Futamura Chemicals Co. Ltd., a Japanese packaging firm.
Financial details of the deal were not disclosed.
Innovia said the sale of Cellophane, which generated sales in 2015 of 118 million euros, would enable it concentrate on producing polymer banknotes and its biaxially oriented polypropylene (BOPP) films business.
The company declined to reveal the unit's profit numbers.
Speaking about the sale, Mark Robertshaw, Innovia's chief executive, said Nagoya, Japan-based Futamura would be a good home for the business, while the deal was an important strategic step for his group.
“Futamura is an excellent long-term owner for Cellophane, with its core business focused on cellulose and plastic films.
“In line with our strategy, we will continue to focus on building our polymer films and banknote business where we see significant growth potential.
“In particular, the benefits of our polymer technology for banknotes have proven to reduce counterfeiting levels significantly and to reduce substantially the lifetime costs to central banks which we expect will continue to drive long term demand for polymer banknotes across the globe.”
President of Futamura Chemical, Yasuo Nagae, said of the deal: “The acquisition of the Innovia's Cellophane business will enhance our product range and presence across the globe.
“It supports our ambition to serve our key customers through local manufacturing facilities offering the highest standards of delivery by experienced personnel. We look forward to welcoming Innovia's Cello employees into our family.”
Cellophane, which has been based in Innovia's Wigton, England, facility since the early 1930s, currently employs a workforce of 471, according to a spokeswoman. The plant will remain onsite, as will its staff.
Innovia is providing the polymer substrate for the new United Kingdom 5 pounds sterling banknote, which comes into circulation in September, and the new 10 pounds sterling banknote, which is due to be issued in September 2017.