January 14, 2022
Smith Anderson divests its ownership of its paper bag joint venture in Poland
Smith Anderson has sold its 50% ownership of its Polish joint venture company, Huhtamaki Smith Anderson sp. z o.o., to Huhtamaki Oyj.
The joint venture company manufactures and sells foodservice paper bags, on its 2 flat paper bag and 1 carrier bag machines within Eastern Europe, from a Huhtamaki’s production facility in Czeladz, Poland.
The joint venture was established as part of a mutually beneficial strategic move to supply paper bags to Poland and its wider CEE neighbours, which encompassed a trading side that utilised product made at Smith Anderson’s Scottish Headquarters, as well as local production. Longer term aspiration was that both principal’s benefit from the contingent support of each other through the JV, to a number of global foodservice customers. (This service will continue, but from January 1st 2022 it will be based on a contingent trading partnership, rather than a production oriented formal JV ownership.)
The sale of the additional shares and related manufacturing equipment realised a significant sum and represents a successful divestment of the production operation, established in 2018. Over the past 4 years, Smith Anderson has continued its growth as a key European supplier to all the major foodservice groups and this has been re-emphasised throughout the Covid-19 epidemic, with additional business gained in more than 10 new markets across Europe, in addition to CEE.
Smith Anderson Group Ltd
4th January 2022