The Indiana-based group is to buy a 75% stake in Qingdao P&B Co, which is headquartered in the Qingdao free-trade zone.
P&B, which has around 550 employees, is partly owned by Chinese drinks business Wuliangye Group, one of the country’s biggest producers of baijiu, a popular Chinese drink.
The company uses thermoforming, injection molding and automated assembly manufacturing processes to make packaging for multiple markets, predominately food and personal care, in both China and globally, according to a statement from Berry.
P&B is reported to have been a supplier to Berry for around seven years.
Berry Plastics chief executive Jon Rich said in a statement: “This acquisition is in direct alignment with our strategic objective of establishing a business presence in emerging global markets.”
He said that the joint venture would allow Berry to “capitalise on our combined business strengths to bring an increased number of innovative products to the Chinese and Asian markets, allowing us to best serve our customers and create increased value for our shareholders”.
Financial details of the transaction have not been revealed, although the Chinese business, which will be known as Qingdao Berry Plastics, has annual turnover of around $34m.
P&B founder Peter Song will retain a minority stake in the company and will continue as its general manager.
