Amcor Ltd. is expanding its flexible packaging operations in China with a $28 million (RMB 185 million) deal for Hebei Qite Packing Co. Ltd.
The single-plant operation in Hebei has annual sales of more than $28 million and serves domestic food and dairy markets, Amcor said.
“Amcor continues to have substantial opportunities to grow our flexible packaging business in the Asian region. Globally and especially within Asia, China is a very attractive growth market for flexible packaging. This acquisition will enhance our already attractive platform for growth with new and existing customers in the important Northern region,” Amcor CEO Ron Delia said in a statement.
The purchase will give Amcor 11 flexible packaging manufacturing sites in China. That includes two locations “in close proximity to Qite,” Amcor said.
“Once fully integrated, Amcor will have an even stronger platform to grow the business in this region. Inclusive of synergy benefits this acquisition will generate strong returns for shareholders within three years,” Amcor said in a statement.
The acquisition still must receive regulatory approvals, the Hawthorn, Australia-based company said.