Marietta, Georgia USA, 14 October 2008 -- /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK) today announced that through its Japanese subsidiary, Graphic Packaging International Japan Limited, the company signed an agreement in March of this year with Hung Hing Printing Group Limited (HKSE: 450) to jointly invest in an integrated paperboard packaging business in China.
Under the agreement, a new joint venture company, Graphic Hung Hing Packaging (Shanghai) Company Limited, has been formed and is based in Shanghai to provide beverage packaging and packaging machinery to beverage companies in China. The new company began operations in September 2008.
"As a world leader in beverage packaging, Graphic Packaging has significant global reach and an expanded portfolio of innovative paperboard packaging, multi-wall bag, labels, flexible packaging and specialty packaging solutions to support our global beverage customers, who are marketing in China," said David W. Scheible, president and chief executive officer, Graphic Packaging Holding Company. "The market in China is expected to grow substantially and our long-term strategy includes participating as a leading supplier to our existing customers and further developing a strong customer base there. By establishing a joint venture with Hung Hing, a very well-respected and successful company in China, we will build a stronger foundation together upon which to implement our mutual strategies," Scheible said.
"We are very pleased to establish this joint venture with Graphic Packaging International Japan, a business partner of ours for more than 10 years," said Mathew Yum, managing director of Hung Hing. "This new partnership will enhance our packaging capability and ensure we are well-positioned to capture opportunities, particularly in the food and beverage market, created by the rapidly growing Chinese economy," he said.
The market for beverage packaging in China is expected to expand significantly as the economy grows and individual incomes continue to rise. Graphic Packaging International Japan estimates that demand for multi-pack beverage packaging in China will grow to approximately 15,000 tons of paperboard by 2010, around 7 to 8 times the 2007 figure.
About Hung Hing Printing Group Limited
Hung Hing Printing Group Limited, one of the largest printing companies in Asia, was established in 1950, and was listed on The Stock Exchange of Hong Kong in 1992. Headquartered in Taipo, Hong Kong, Hung Hing has five plants in China: four in the Guangdong Province (Fuyong, Zhongshan, and Heshan) and one in Wuxi (near Shanghai). With a workforce of more than 17,000 people, the company prints and manufactures paper and corrugated packaging, and provides printing and packaging services. Hung Hing also engages in paper trading. Its customers include some of the most recognized international names in toys, consumer goods and publishing.
About Graphic Packaging International Japan Limited
Established in 1991, Graphic Packaging International Japan is a wholly-owned subsidiary of Graphic Packaging Holding Company and supplies multi-packs, packaging systems and paperboard to customers across Japan, China, and the Asia Pacific region. Graphic Packaging International Japan is engaged in the beverage multiple packaging business through the company Rengo Riverwood Packaging Company Limited, a joint venture between Graphic Packaging Holding Company and Rengo Company Limited.
About Graphic Packaging Holding Company
Graphic Packaging Holding Company (NYSE: GPK), headquartered in Marietta, Georgia, is a leading provider of paperboard packaging solutions for a wide variety of products to food, beverage and other consumer products companies. The company is one of the largest producers of folding cartons and holds a leading market position in coated-recycled boxboard and specialty bag packaging. The company's customers include some of the most widely recognized companies in the world. Additional information about Graphic Packaging, its business, and its products is available at www.graphicpkg.com