The acquired business has sales of approximately RMB440 million and two plants in the Jiangsu province in Eastern China. Two thirds of its sales are to the pharmaceutical, snacks and culinary end markets.
According to Amcor, the acquired business is a strong fit with Amcor’s exiting plant in Jiangsu province and enables sharing of overheads, optimisation of production across the sites and operating improvements through sharing of best practice. These opportunities are expected to deliver cost synergy benefits of more than 5% of sales.
Amcor managing director and chief executive Ken MacKenzie said: “Continued strong growth in consumer spending makes China one of the most attractive markets globally. Amcor has a strong and successful position in the Chinese flexible packaging market with nine plants, covering all the key regions and sales of over A$400 million.
“This acquisition establishes Amcor as the market leader in Eastern China, a region that represents approximately 40% of China’s GDP. The business is a strong fit with our existing operations and offers considerable synergy opportunities.”
