The Fedrigoni Group said that it finalized the acquisition of the entire share capital of Arjowiggins HKK3 Limited (Arjowiggins), owner of the Arjowiggins China Group, on Dec. 29, 2023.

The deal concludes an agreement that Fedrigoni reached with Arjowiggins in February 2023, whereby Fedrigoni entered a manufacturing partnership with the Quzhou mill — a specialty paper producer of translucent papers in Quzhou, Zhejiang province, China.

As part of the deal, Fedrigoni provided a loan to an acquisition vehicle, set up by two former Arjowiggins senior executives, in consideration for a call option giving Fedrigoni the option to take over the company in the longer term.

The Quzhou mill is a leader in the production of translucent papers — sold under the Gateway and Sylvicta brands — for applications ranging from industrial design and graphics to food, consumer electronics and luxury packaging.

Marco Nespolo, CEO at the Fedrigoni Group, commented, "With its first paper mill in China, Fedrigoni can now strengthen its geographic presence in the Asian market, where it already has an extensive distribution network in China, Hong Kong, the Philippines, Indonesia, and Bangladesh, including 11 warehouses, a self-adhesive materials manufacturing plant in Hefei and an RFID inlays and tags manufacturing plant in Guangzhou.

"The deal will also enable the group to further expand its product portfolio in the translucent paper segment, which has the potential to increasingly replace plastic in packaging as a fully recyclable monomaterial," Nespolo added.

Today, the Quzhou mill employs 130 people and produces about 7,000 tons of translucent papers annually.

Fedrigoni noted that product innovation related to the transition from plastic to paper is a major area of investment in the research development and innovation roadmap for Fedrigoni and a key pillar of its ESG strategy to 2030.

Based in Italy, Fedrigoni Group is a leading producer of specialty papers for graphic use and self-adhesive products for labels, and primarily the production of self-adhesive labels for the wine sector.

SOURCE: Fedrigoni S.p.A.

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