The acquisitive Italy-headquartered group has agreed a manufacturing partnership with Quzhou mill that involves making a loan to a new acquisition vehicle set up by two former Arjowiggins executives, with Fedrigoni then having the option to ultimately take over the business as part of the deal.
Printweek has learned that the two executives are Jonathan Mitchell, Arjowiggins Group CEO, and Christophe Jordan, managing director for translucent papers and smart papers.
Quzhou employs 130 and its capacity is 7,000tpa. It makes the Idem, Gateway and Sylvicta brands for markets including luxury products, food and consumer electronics.
Like Guarro Casas mill in Spain, which was acquired by Fedrigoni last autumn, Quzhou was not included in the Arjo operations that went into administration in September 2022.
Although Fedrigoni has an established sales and distribution network in Asia, and a self-adhesive plant in Hefei, China, Quzhou would become its first Chinese paper mill.
It said the Quzhou offering was attractive due to the potential Sylvicta in particular to replace plastic in packaging “as a fully recyclable mono-material”.
“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.”
Fedrigoni has also acquired the former Arjo R&D facility in Grenoble, France, which focuses on advanced paper substrates, printed electronics, and RFID and holds numerous patents. It is where the PowerCoat NFC (near-field communication) substrate was developed.
In a statement, Fedrigoni said: “The applications of this highly innovative and promising segment are countless, both in the self-adhesive labels and luxury packaging markets.
“It is instrumental to find solutions to protect brands, verify their authenticity and prevent counterfeiting. It is also crucial to ensure the traceability of products and goods, as well as for sustainability purposes.”
The group also cited the potential for brands to created “cutting-edge digital interactions” with consumers using the know-how.
The terms of the deals were not disclosed.
Last spring Fedrigoni made its first move into RFID with the acquisition of Tageos.
Its ambitious expansion plans are backed by joint owners Bain Capital Private Equity and BC Partners, and following a string of buys the group now has more than 5,000 employees in 28 countries and offers some 25,000 products.
