Sun Chemical parent to grow packaging inks business in Asia-Pacific

Sun Chemical parent to grow packaging inks business in Asia-Pacific

DIC Asia Pacific Pte Ltd, the Singapore-based subsidiary of Sun Chemical’s parent company DIC Corporation, has agreed to take over the businesses of New Zealand water-based flexo inks specialist Pacific Inks, in a move to grow DIC’s packaging inks business in the Asia-Pacific region.
 
In addition to its mother plant in Auckland, Pacific Inks has subsidiaries in Oceania (Sydney, Melbourne and Adelaide, Australia), Asia (Singapore, Malaysia and China) and the UK. DIC said the division of operations between the mother plant and the regional mixing plants facilitates outstanding productivity, with a product line-up centered on packaging inks providing a favorable reputation for environment-friendly water-based flexo inks.
 
Demand for packaging inks remains firm in developed countries – reflecting rising living standards and the prevalence of individual packaging for many items – and in the Asia-Pacific region is expected to grow by about 10 percent annually for the foreseeable future, DIC said.
 
In recent years, DIC has addressed the need to fortify its capabilities in the packaging inks business as a principal strategic theme. This acquisition will enable DIC to add water-based flexo inks to its portfolio and strengthen its operations, particularly in the Asia-Pacific region where environmental awareness is increasing rapidly. This, together with Pacific Inks’ proprietary Accubatch system and DIC’s own extensive range of products and global network, will position DIC to respond effectively to expanding demand for packaging inks.
 
In a statement, DIC said: ‘Thanks to a reinforced product line-up and broad commercial rights, including key major customers, and to the addition of water-based flexo inks to the line-up of products generated by its existing facilities, DIC forecasts this acquisition will add ¥2.5 billion to annual net sales by fiscal 2015.
 
‘By rationalizing existing facilities and plants newly acquired from Pacific Inks in the Asia-Pacific region, DIC will also strive to further improve production efficiency.’