Stora Enso to increase stake in Inpac Packaging to 90%
Stora Enso has decided to strengthen its position in the Chinese packaging market. The company plans to increase the stake in its Inpac subsidiary from 51% to 90%.
Stora Enso announced it would increase the ownership in its subsidiary Inpac Packaging in China. The company currently holds a majority stake of 51% and plans to raise it to reach 90%. Stora Enso puts the purchase price at approximately €46m. The transaction is subject to approval by Chinese authorities and is expected to be finalised during the first quarter of the year.
Stora Enso said the transaction would give the company a better opportunity to develop the Inpac Packaging business further. The move will not have any impact on the group's sales or operating profit.
Stora Enso Inpac offers fibre-based packaging solutions with design, production, sales and R&D services. The company has production units in Qian'an, Dongguan and Jiashan in China with a workforce of 2,400 and serves global and local brand owners. In June last year, Stora Enso parted with an Inpac plant in Chennai in India and exited the Indian packaging market. The Chennai plant used to produce transport and consumer packaging made out of corrugated board.
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