Market: Packaging Paper & Board
Posted April 16, 2018
Rengo Co., Ltd. will transfer all its equity in its corrugated packaging subsidiary, Guangdong Rengo Packaging Co., Ltd. (Guangdong Rengo), which is located in Foshan City, Guangdong, China, to Sun Hing Paper Company, Limited, a subsidiary of Hung Hing Printing Group Limited.
Hung Hing Printing is an equity-method affiliate of Rengo in which Rengo holds a 29.91% stake. Although it will mean that Guangdong Rengo will no longer be Rengo’s consolidated subsidiary, Rengo will transfer its equity in Guangdong Rengo to Sun Hing Paper to support Hung Hing Printing’s plans aimed at expanding its corrugated packaging business in Guangdong.
The corrugated packaging business in China is an important strategic focus for the overseas operations of the Rengo Group as a “General Packaging Industry” (GPI).