SCA Buys Remaining Stake in Chinese Packaging Business
Dec. 27, 2006 - SCA said that it has purchased the remaining 7.5% of the shares in SCA Packaging Asia (formerly Central Package Group) from chemical-maker Sekisui for US $6.5 million (approx SEK 45 million).
SCA has held a 92.5% stake in the company since 2004. SCA Packaging Asia will now be a wholly owned subsidiary of SCA.
"Investments in recent years, including investment in a totally new packaging plant in Suzhou, are important steps in a strategy designed to increase growth in the Chinese market." said SCA's president and CEO Jan Astrom.
SCA Packaging Asia has annual sales of about US $200 million (SEK 1.5 billion).
SCA expects sales to at least double within five years through organic growth.
SCA Packaging Asia's operations are mainly in China, where there are 16 production facilities. An additional six plants are located in Singapore, Malaysia and Indonesia.