Nippon Paper buys 70% of Malaysia’s TS Plastics to target eco-packaging market
KUALA LUMPUR, NNA - Japanese paper producer Nippon Paper Industries Co. has acquired a 70 percent stake in Malaysian flexible packaging maker TS Plastics Sdn. Bhd. to enter the eco-friendly packaging market in Southeast Asia.
The remaining 30 percent share is held by TS Capital Resources Sdn. Bhd., Nippon Paper said in a statement on Monday. A spokeswoman for Nippon, Miho Fujita, declined to comment on the value of the share purchase.
Nippon Paper said it will use TS Plastics’ expertise in flexible packaging and customer network to respond to growing demand for recyclable and biodegradable materials. “Paper is again favorably viewed as an alternate packaging material,” it said.
Combined sales of the top 10 Malaysian packaging companies total about 35 billion yen ($313 million) and they are growing at an annual pace 5 to 6 percent, Fujita from Nippon Paper said.
TS Plastics was founded in 1996, and its annual sales are about 74 million ringgit ($17.9 million).