The latest step is the acquisition of a majority interest in the Chinese Shuangfeng Group a recognised quality leader for pharma packaging in China. For Dr. Axel Herberg (see photo), the 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.
Shuangfeng employs 670 people in two locations, manufacturing around 800 million pharma vials, predominantly for the domestic market. Sales of around :10m are expected this year. 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.
As CEO Dr. Axel Herberg explains: Through the acquisition of the majority interest in Shuangfeng we are consistently continuing our policy of targeted global purchases in the pharma sector. 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.
Through the acquisition Gerresheimer now expands its leading market positions for pharmaceutical packaging in Europe and North America into China as well. Just recently, at the end of 2005, the Group also acquired a 45.7% share in the Chinese specialist for moulded glass, Beijing Wheaton (today Beijing Gerresheimer). Gerresheimer is developing more and more into a real global market leader.
The takeover was preceded by intensive market analyses which finally led to the decision in favour of the Shuangfeng Group. For Gerresheimer the acquisition also 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 Groups 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.