Oji Holdings Acquires United Packaging Joint Venture Co. in Vietnam
United Packaging Joint Venture Co. produces folding boxes, high-grade corrugated carton boxes, paper cups, and other packaging products in Vietnam
Dec. 3, 2013 (Press Release) - Oji Holdings Corporation would like to announce that a share sale and purchase agreement for the acquisition of 75% of all the issued shares of United Packaging Joint Venture Co., Ltd (hereinafter "UPJV"), which is a packaging manufacturer involved in the manufacturing and sale of folding boxes, high-grade corrugated carton boxes and paper cups, etc in Vietnam, has been executed [Dec. 2].
1. Background of the acquisition
Currently, Oji Group has been aggressively pursuing business portfolio restructuring which centers around business fields such as household and industrial materials, functional and new materials, resources and energy and which also sets sights on business expansion into close business fields such as chemical and medical products, via the strengthening of R&D, technologies, sales capabilities which forms the foundation of our management.
Among these, with regards to business field of household and industrial materials, we will continue to aggressively aim for the expansion of packaging business in the Southeast Asia and India region, where significant economic growth is expected. As of now, the number of business sites in this region has been expanded to 18 (please refer to appendix).
With regards to our Group's packaging sites in Vietnam, including the new factory that started operation in June this year in Bac Ninh province, North Vietnam, we have 1 site in South Vietnam (near Ho Chi Minh City) and 2 sites in North Vietnam (near Hanoi City). UPJV, with which the share sale and purchase agreement has been executed, owns a factory in Ho Chi Minh City. Therefore, with this acquisition, there will be a total of 4 packaging sites, consisting of 2 sites each in South and North Vietnam. With this business acquisition, our Group, on top of the existing corrugated carton boxes business in Vietnam, adds folding boxes business to the current product mix, thus making it possible to provide a more comprehensive total packaging service and also to meet the various needs of the Vietnam market that continues to develop in the future.
Under our corporate slogan of "Beyond the boundaries", we will continue pushing forward our business expansion plan in the whole Southeast Asia and India region, including fast entry into untapped countries, so as to provide total packaging solution services in the whole region.
2. Overview of UPJV
- Company Name: United Packaging Joint Ventrure Co., Ltd.
- Location: Ho Chi Mihn City (South Vietnam)
- Date of Establishment: January 23, 2002
- Business Lines: Manufacturing and sales of folding boxes, high-grade corrugated carton boxes and paper cups, etc.
- Number of Employees: Approximately 200
SOURCE: Oji Holdings Corporation