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Huhtamaki buys Chinese packaging producer

Open box with noodles and chopsticks
Huhtamaki strengthens its position in the Asian foodservice packaging market
22 Apr 2021 − 

With the acquisition of Chinese packaging manufacturer Jiangsu Hihio-Art Packaging, Finnish company Huhtamaki is strengthening its position in the Chinese foodservice packaging market.

The company has entered into an agreement to acquire the assets of Jiangsu Hihio-Art Packaging Co. Ltd., for a purchase price of €27m on a debt-free basis. With this acquisition, Huhtamaki expands its product portfolio in China and gets access to new selling channels, the company writes.

Jiangsu Hihio-Art Packaging is a privately owned business that produces paper bags, wraps and folding cartons for international quick-service restaurants (QSR) as well as national bakery chains. The company employs approximately 200 people in its manufacturing unit in Xuzhou city, Jiangsu, and recorded annual sales of approximately €20m in 2020.

The acquisition, which is subject to customary closing conditions, is expected to be completed by the end of the third quarter 2021.

After completion of the transaction, Jiangsu Hihio-Art will be part of Huhtamaki's Foodservice Europe-Asia-Oceania reporting segment. Furthermore, Huhtamaki's production platform in China will comprise four manufacturing units: in Guangzhou, Shanghai, Tianjin, and Xuzhou.

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