Gerresheimer acquires majority interest in Chinese pharma packaging company

The German-based Gerresheimer Group is continuing its strategic expansion in pharmaceutical packaging with the acquisition of a majority interest in the Chinese Shuangfeng Group - a recognised leader in pharma packaging in China.

Shuangfeng employs 670 people in two locations, manufacturing around 800 million pharma vials, predominantly for the domestic market. Gerresheimer is taking over 60% of the shares in each location-related company, thereby entering the Chinese market for tubular glass packaging for the first time. An additional production plant is currently being built on a greenfield site so that further expansion can be realised quickly.

For Dr Axel Herberg, Gerresheimer ceo, the acquisition dovetails perfectly with the policy of "targeted purchases" through which the Group is further expanding its role as a leading partner in the pharma sector internationally. "Through the acquisition of the majority interest in Shuangfeng we are continuing our policy of targeted global purchases in the pharma sector," he said.

"The acquisition marks another important step in the Chinese market and is part of the forward strategy through which we are rapidly expanding our pharma business in the high-growth Asian region. With the Shuangfeng Group we will quickly achieve a market-leadership position in China."

For Gerresheimer the acquisition provides a good base for targeted transfers of products to China in coming years and/or servicing of new low-price market segments. This will result in a further substantial improvement in the Group's world market position and cost situation, says Herberg. The acquisition is subject to approval by the Chinese authorities, which is expected in the next few weeks.