The Fedrigoni Group has entered into two strategic agreements – a manufacturing partnership with a specialty paper mill, producer of translucent papers in China, and the acquisition of a research and development centre in France.
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.
Secondly, the acquisition 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.
With 130 employees and an annual production capacity of 7000 tonnes, the Quzhou mill is a 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.
Fedrigoni will therefore strengthen its 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.
Besides strengthening its geographical footprint in Asia, this transaction will lead Fedrigoni to further expand its product portfolio in the translucent papers segment by acquiring manufacturing capabilities, which has the potential to increasingly replace plastic in packaging as a fully recyclable mono-material thanks to the Sylvicta brand. Product innovation linked to the transition from plastic to paper is one of the largest investment areas for Fedrigoni and a key pillar of its ESG strategy and roadmap towards 2030.
On the other hand, 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.
