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Sonoco takes over joint venture of Conitex Sonoco
05 Oct '18
2 min read
Courtesy: Sonoco
Sonoco, a diversified global packaging company, has taken over the remaining 70-per cent interest in the joint venture of Conitex Sonoco, a vertically integrated company manufacturing paper-based cones and tubes for textile industry. The Conitex Sonoco joint venture was formed in 1998 between Texpack and Sonoco’s former North America textile cone business.
Texpack is a Spanish-based global provider of paper-based packaging products.
Sonoco acquired the remaining 70-percent interest from Texpack, along with a composite can plant in Spain for $143 million in cash. In 2017, the joint venture produced total sales of approximately $245 million and produced more than 300,000 tons of uncoated recycled paperboard, which was used to produce approximately 1.4 billion tubes and cones for the global spun yarn industry. The joint venture has approximately 1,250 employees and 13 manufacturing locations in 10 countries, including four paper mills and seven cone and tube converting operations and two other production facilities.
“The Conitex Sonoco relationship has been very successful over the past 20 years, and we see even further opportunity to grow Sonoco’s existing global paper-based tube and core business through this combination, especially in faster-growing emerging markets in Asia where we will be substantially increasing our manufacturing presence while more than doubling our current annual sales in the region,” said Rob Tiede, Sonoco president and chief executive officer.
Conitex Sonoco’s chief operating officer Michel Schmidlin and members of his global leadership team will remain with Sonoco, and there are no expected changes to customer relationships. Conitex Sonoco’s financial results will be reported within Sonoco’s Paper/Industrial Converted Products segment and the Spanish composite can operations reported in the company’s Consumer Packaging segment. (SV)
Texpack is a Spanish-based global provider of paper-based packaging products.
Sonoco acquired the remaining 70-percent interest from Texpack, along with a composite can plant in Spain for $143 million in cash. In 2017, the joint venture produced total sales of approximately $245 million and produced more than 300,000 tons of uncoated recycled paperboard, which was used to produce approximately 1.4 billion tubes and cones for the global spun yarn industry. The joint venture has approximately 1,250 employees and 13 manufacturing locations in 10 countries, including four paper mills and seven cone and tube converting operations and two other production facilities.
“The Conitex Sonoco relationship has been very successful over the past 20 years, and we see even further opportunity to grow Sonoco’s existing global paper-based tube and core business through this combination, especially in faster-growing emerging markets in Asia where we will be substantially increasing our manufacturing presence while more than doubling our current annual sales in the region,” said Rob Tiede, Sonoco president and chief executive officer.
Conitex Sonoco’s chief operating officer Michel Schmidlin and members of his global leadership team will remain with Sonoco, and there are no expected changes to customer relationships. Conitex Sonoco’s financial results will be reported within Sonoco’s Paper/Industrial Converted Products segment and the Spanish composite can operations reported in the company’s Consumer Packaging segment. (SV)
Fibre2Fashion News Desk – India
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