Fedrigoni Enters Manufacturing Partnership in China; Acquires R&D Centre in Grenoble

Feb. 7, 2023 - The Fedrigoni Group announced that it has entered into two strategic agreements. First, 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 has 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.

Second, the acquisition of a dedicated research and development centre in Grenoble, France, which will allow Fedrigoni to boost its product innovation roadmap in RFID, printed electronics, and advanced research on paper substrates.

Both realities were formerly part of the Arjowiggins Group, which filed for administration last September.

Fedrigoni did not release financial terms of the deals.

Quzhou Mill

The Quzhou mill is a leading manufacturer of translucent papers (sold under the brands Gateway, Idem and Sylvicta) for applications ranging from industrial design and graphic applications to packaging for food, consumer electronics and luxury products. The mill has 130 employees and an annual production capacity of 7,000 tonnes.

The Quzhou mill will strengthen Fedrigoni's presence in the Asian market, where the Group already has a wide distribution network in China, Hong Kong, Philippines, Indonesia, and Bangladesh, 11 warehouses and a self-adhesive materials production plant in Hefei — with its first paper mill in China.

R&D Centre in Grenoble

The acquisition of the dedicated R&D Centre in Grenoble — with its people, equipment, patents, and brands, including the related Powercoat brand — will enhance Fedrigoni's capabilities in testing and prototyping RFID, printed electronics, and advanced research on paper substrates.

According to Fedrigoni, the applications of this highly innovative and promising segment are countless, both in the self-adhesive labels and luxury packaging markets.

"It is instrumental to find solutions to protect brands, verify their authenticity and prevent counterfeiting," Fedrigoni said in a press release. "It is also crucial to ensure the traceability of products and goods, as well as for sustainability purposes (e.g., monitoring of transport-related carbon footprints).

"Thanks to this acquisition, Fedrigoni will also augment its research, development, and innovation capabilities in alternative pulp-based materials, benefitting from the relationships established within the existing ecosystem, particularly in the Grenoble area, such as the International Paper Engineering School Grenoble INP-PAGORA, or the Pulp and Paper Research & Technical Centre (CTP)," the company said.

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.