Seha, a Cardboard Production Company, Signs Stock Acquisition Agreement
[Asia Economy Reporter Kim Daeseop] Hankuk Paper is accelerating its 'Vision 2025' to realize a top-tier eco-friendly company together with its customers.
According to Hankuk Paper on the 22nd, it signed a stock acquisition agreement with Seha, a leading manufacturer of general-purpose white cardboard, on the 20th. White cardboard is used as packaging material for confectionery, pharmaceuticals, cosmetics, and more. Last month, Hankuk Paper formed a consortium to participate in the bidding for acquiring shares of Seha Co., Ltd., a white cardboard company, and was selected as the preferred negotiator by the sales agent.
With this acquisition of Seha, Hankuk Paper has diversified its business portfolio from printing paper, copy paper, specialty paper, white cardboard, to corrugated cardboard, becoming a comprehensive paper company with sales exceeding 1 trillion won. Hankuk Paper has been seeking companies that not only have market growth potential but also operate businesses highly complementary to the company’s main future businesses.
Established in 1958, Hankuk Paper specialized in producing printing paper and copy paper. In 2013, it expanded its business area into the specialty paper market by acquiring China’s 'Guo Il Paper Zhangjiagang Co., Ltd.' It enhanced growth potential in the global paper market through stable profit structure establishment and large-scale facility investments.
In 2019, it acquired Wonchang Packaging Industry, a corrugated cardboard manufacturer. Now, it has succeeded in acquiring Seha, which mainly produces white cardboard. According to the company, the white cardboard market’s profitability is improving due to the decline in waste paper prices caused by China’s restrictions on waste paper imports.
A Hankuk Paper official said, "This merger and acquisition (M&A) is expected to enhance business competitiveness not only through external growth of the company but also by sharing know-how in raw material procurement, production, and distribution, as well as synergy effects with existing businesses." He added, "It is also expected to strengthen basic technology research capabilities through technical exchanges between companies."
Hankuk Paper is also actively working on developing eco-friendly products. Recently, it launched 'Green Shield,' a packaging material applying eco-friendly coating agents. This product has water resistance that blocks moisture and oil resistance that blocks oil components, making it usable not only for paper cups but also for various food packaging materials.
Green Shield is an eco-friendly packaging material that naturally decomposes underground with minimal impact on soil. It is the first domestic paper company to apply eco-friendly coating to base paper, and unlike typical polyethylene-coated products, it is 100% naturally decomposable underground and 100% recyclable, according to the company.
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