Australian flexibles giant Amcor has acquired Chinese flexible product manufacturer Hebei Qite Packing in a $36m deal, which will add to its existing eleven packaging plants in the region.

Qite operates one plant in the Northern Chinese province of Hebei, generating annual sales of $34m largely through its suite of domestic customers in the dairy and food segments.

Amcor managing director and CEO Ron Delia says, “Amcor continues to have substantial opportunities to grow our flexible packaging business in the Asian region.

Globally and especially within Asia, China is an attractive growth market for flexible packaging. This acquisition will enhance our already attractive platform for growth with new and existing customers in the important Northern region.”

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According to the packaging giant, the deal is forecasted to generate strong returns for its shareholders within three years in addition to its synergy benefits.

The $36m deal will build upon Australian-based Amcor’s existing troop of eleven Chinese packaging plants, two of which are in close proximity to Qite in northern China.

Amcor’s Qite takeover comes shortly after the group finalised its part-acquisition of North American rigid plastics company Sonoco.

The acquisition remains subject to regulatory approval.

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