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Fedrigoni completes acquisition of Arjowiggins China, manufacturer of translucent specialty papers increasingly used as plastic substitutes

The Fedrigoni Group - a leading global player in the production of specialty papers for luxury packaging and other creative applications, self-adhesive labels and materials, and RFID and connected solutions - after concluding an industrial agreement a year ago with Arjowiggins HKK3 Limited, owner of the Arjowiggins China Group, announced that it had finalized the acquisition of the entire share capital of Arjowiggins HKK3 Limited on Dec. 29, 2023.

The Quzhou-based paper mill, located in Zhejiang province, is a world leader in the production of translucent papers, sold under the Gateway and Sylvicta brands, for applications ranging from industrial design and graphics to food, consumer electronics and luxury packaging.

“With its first paper mill in China Fedrigoni can now strengthen its geographic presence in the Asian market, where it already has an extensive distribution network in China, Hong Kong, the Philippines, Indonesia, and Bangladesh, including 11 warehouses, a self-adhesive materials manufacturing plant in Hefei and an RFID inlays and tags manufacturing plant in Guangzhou - comments Marco Nespolo, CEO at the Fedrigoni Group -. The deal will also enable the group to further expand its product portfolio in the translucent paper segment, which has the potential to increasingly replace plastic in packaging as a fully recyclable monomaterial”.

Today, the Quzhou manufacturing plant employs 130 people and produces about 7,000 tons of translucent papers annually. Product innovation related to the transition from plastic to paper is a major area of investment in the research development and innovation roadmap for Fedrigoni and a key pillar of its ESG strategy to 2030.

With Arjowiggins China, the number of M&As completed by Fedrigoni in the last four years rises to 14, including two in the new year. Just a few days ago, in fact, the Group announced an initial investment to obtain a minority stake in SharpEnd / io.tt, the IoT consulting, and solutions company whose mission is to help brands evolve their products, packaging, and customer engagement through connected solutions, with a path to acquire the entire capital in the longer term.

The acquisition of Arjowiggins China enhances the Fedrigoni Special Papers business unit

The Fedrigoni business unit, which specializes in high-end specialty papers, has taken another step forward with the acquisition of Arjowiggins China. Today, the division includes the historic brands MyCordenons and Fabriano, and over the past four years, numerous brands have joined the Fedrigoni Special Papers ecosystem: Éclose (2021) with its sustainable cellulose-based packaging solutions, Guarro Casas with its experience in binding solutions and Zuber Rieder with the most innovative papers for labels.

The offering of the Fedrigoni Special Papers division revolves around four main pillars: Luxury Ecosystem, a wide range of specialty papers for top brands in the luxury sector for packaging and communication; Creative Communication, a vertical dedicated to high-end applications and quality publishing; Technical Solutions, which includes all the most innovative solutions from RFID to smart papers, from special papers that replace plastic in many applications to playing cards or gift cards, Art and Drawing, linked to the world of Fabriano creative papers.

"Shaping ideas, Stories and Experiences" is the new creative concept with which Fedrigoni Special Papers renews its promise to the market. The concept was born from the collaboration with the London creative agency Pentagram: a blank page is the place where ideas are born and Fedrigoni's special papers are the medium through which each new idea takes shape.

Sustainability remains at the center of Fedrigoni's strategy and also guides the research and development of the Fedrigoni Special Papers business unit - in its Innovation Centers in Verona and Grenoble - to achieve the ESG objectives that the Group has set: the significant reduction of emissions to achieve carbon neutrality by 2050, the development of "circular" products to eliminate waste with the aim of recycling 100% of the paper by 2030, the reduction of 10% of the withdrawal of fresh water (by 2030) and the return of all the water used to the environment clean and purified (currently already over 95%). The company continues to use only cellulose from FSC certified forests and identifies natural spaces near each paper mill where biodiversity can be restored and the return of local birds of prey monitored. In addition, the Group aims to use alternative fibers such as cotton, hemp, and linen as much as possible.