The Contract Packaging Association’s fourth ‘State of the Industry Report’ depicts a contract packaging/contract manufacturing industry growing at double-digit numbers, despite massive market changes. For those in the contract packaging/contract manufacturing industry, the Contract Packaging Association’s recently released 2018 “State of the Industry Report” is something to celebrate. According to the report, the market has been growing at an 11.9% CAGR for the past five years, an astonishing two- to four times faster than the industries it supports. By 2020, the CPCM market is forecast to break the $75 billion mark—a conservative number notes the report—rising from $53.6 billion at year-end 2017.
Qite has one plant located in Hebei, North China and the business generates sales of over RMB 180 million (US$28 million) from the sale of flexible packaging products to large domestic customers within the dairy and food segments.
Amcor currently has a total of eleven flexible packaging plants in China, including two plants in close proximity to Qite in Northern China. Once fully integrated, Amcor will have an even stronger platform to grow the business in this region. Inclusive of synergy benefits this acquisition will generate strong returns for shareholders within three years.
Amcor’s Managing Director and CEO, Ron Delia said, “Amcor continues to have substantial opportunities to grow our flexible packaging business in the Asian region.
Globally and especially within Asia, China is a very attractive growth market for flexible packaging. This acquisition will enhance our already attractive platform for growth with new and existing customers in the important Northern region.”
The acquisition remains subject to regulatory approvals.