Amcor expands further into Chinese market with flexible packaging acquisition

In a bid to expand further into the Chinese market, Australian global packaging manufacturer Amcor Ltd. is buying the flexible packaging business of China’s Jiangsu Shenda Group Co. Ltd. for 350 million yuan (US$57 million).

According to a statement by Melbourne-based Amcor, the acquired business is a strong fit with its existing plant in Jiangsu province and enables sharing of overheads, optimisation of production across the sites, and operating improvements through sharing of best practices.

“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,” said Amcor’s managing director and chief executive Ken MacKenzie. “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.”

Jiangsu Shenda Group operates two plants in the Jiangsu province in Eastern China; two-thirds of its sales are to the pharmaceutical, snacks and culinary end markets.