Swede success

- Last updated on GMT

Related tags: China, Southeast asia, United states

Swedish firm SCA has increased its ownership interest to 65 per
cent in Central Package Group, which holds a stable position on the
Chinese packaging market. The move represents the latest European
foray into Asia's burgeoning packaging industry.

Swedish firm Svenska Cellulosa Aktiebolaget​ (SCA) has increased its ownership interest to 65 per cent in Central Package Group, which holds a stable position on the Chinese packaging market. The move represents the latest European foray into Asia's burgeoning packaging industry.

In January 1999, SCA acquired 11 per cent of the shares in the Singapore-based packaging company Central Package, an ownership interest that successively increased to 48 per cent. SCA has now reached an agreement with minority owners covering the acquisition of additional shares.

Following the current transaction, SCA's interest increases to 65 pre cent, with the ambition of further increasing the ownership interest to more than 90 per cent. The founder of Central Package, Anthony Chen, will retain a minority interest.

During the period with SCA as a part-owner, Central Package has demonstrated profitable growth. Annual sales currently correspond to slightly more than USD 95 M (about SEK 750 M), with an EDITDA margin of about 16 per cent. The company holds a stable position on the Chinese packaging market, which is showing growth of about 10 per cent annually.

Central Package has some 20 converting units in China specialising primarily in production of corrugated board and protective packaging. In addition to operations in China, Central Package also has converting units in Singapore, Malaysia, Thailand and Indonesia.

Related topics: Processing & Packaging

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