The acquisition forms part of DIC’s efforts to boost its supply configuration in the north and northeast of China
DIC Corporation has closed the acquisition of liquid inks for packaging business from Liaoning Tianqi Technology, a China-based manufacturer of liquid inks for packaging for the food and beverages industry.
The acquisition is part of DIC’s efforts to strengthen its supply configuration in the north and northeast of the People’s Republic of China (PRC). Financial terms of the deal were undisclosed.
DIC Group supplies and sells a wide range of high-grade, environment-friendly liquid inks from its production bases in the east and south of the PRC including in Nantong, Jiangsu Province, and Guangzhou, Guangdong Province.
The firm said in a statement: “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.”
DIC seeks to boost liquid inks production capacity by 20%
DIC expects the deal to increase the production capacity of liquid inks for food and beverage packaging, by around 20% in the country.
In a press statement, DIC noted: “In addition to taking over the business’s existing operations, which centre 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 said it is currently focused on strengthening production capabilities in the Asian markets, bolster its product portfolio, and expand the business scope through joint ventures, mergers and acquisitions and other actions.
Last year, DIC has announced the development of instant curing solvent-free adhesive, named Dualam, for general purpose packaging.