announced that on May 1, 2020, it acquired a business from Liaoning Tianqi Technology Co., Ltd., a company engaged in the manufacture and sale of liquid inks for packaging used for food products and beverages based in the city of Tieling, Liaoning Province, in the People’s Republic of China (PRC).
DIC’s investment is undisclosed.
The acquired company name will be DIC Graphics (Shenyang) Ltd.
Liquid inks for packaging are used to print on flexible packaging materials used for food products and beverages.
Demand for these inks has climbed in the PRC in recent years while rising concern for environmental and safety-related issues has fueled needs for environment-friendly options.
The DIC Group has production bases in the east and south of the PRC—in Nantong, Jiangsu Province, and Guangzhou, Guangdong Province, respectively—from which it supplies and sells a wide range of high-grade, environment-friendly liquid inks to customers across the country.
This new acquisition is expected to increase the Company’s production capacity for liquid inks in the PRC by around 20%.
In addition to taking over the business’s existing operations, which center on the northeast of the country, DIC will position the production facilities gained through the acquisition as its production sites in the north and northeast, thereby also reinforcing its regional supply configuration, which the company anticipates will boost local sales.
DIC also recognizes that dispersing its production sites in the PRC will enable it to ensure more stable supplies.
One of the basic policies outlined in DIC’s current medium-term management plan, DIC111, is to concentrate resources on packaging solutions.
Accordingly, the company is working to bolster its product portfolio, strengthening its production capabilities in the flourishing Asian markets and expanding the scope of this business through joint ventures, mergers and acquisitions and other actions. Going forward, the Group will continue working to fortify and broaden the foundation of its packaging solutions business to accelerate growth.