Amcor is continuing its strategic expansion into the Northern China region through its acquisition of Hebei Qite Packing (Qite) for $36m.

Established in 2000, Qite has one plant located in Hebei, North China and specialises in producing flexible packaging products for the dairy and food markets. 

This marks Amcor’s twelfth Chinese flexible packaging acquisition, the company already owns two plants in close proximity to Qite in Northern China. 

The takeover is expected to boost Amcor’s presence in the China region, the company says shareholders will expect to see strong returns on the acquisition within three years. 

Amcor’s 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.”

This year Amcor’s flexibles segment experienced a 3.6 per cent fall in sales revenue, as outlined in Amcor’s full year results statement released in August.

The company’s flexibles sales revenue fell from US$6.2bn in 2015 to $6.0bn in 2016. PBIT also dropped 2.2 per cent from US$772m in 2015 to US$755m in 2016.

Amcor is also seeking to grow its rigid plastics business with its purchase of US packaging firm Sonoco’s rigid plastics blow molding operations.

The deal worth $360m was completed on November 8. Amcor’s acquisition of Qite remains subject to regulatory approvals.

Comment below to have your say on this story.

If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.  

Sign up to the Sprinter newsletter