Yasuo Nagae, president of Futamura Chemical, says: ‘The acquisition of the Innovia’s Cellophane business will enhance our product range and presence across the globe. It supports our ambition to serve our key customers through local manufacturing facilities offering the highest standards of delivery by experienced personnel.’
The decision to sell has been taken as UK-headquartered Innovia looks to refocus its attention on its polymer banknote business, where it holds a near-monopoly through its Guardian substrate line. Over 50 billion Innovia biaxially orientated polypropylene (BOPP) have now been produced worldwide.
The transition from traditional cotton paper will receive a fillip in September 2016 when Guardian enters circulation as the base for the new Bank of England £5 note – with a £10 denomination to follow in 2017.
The Cellophane sale is scheduled to be completed by 30 June 2016 for an undisclosed fee.
Innovia chief executive Mark Robertshaw adds: ‘The sale of our Cellophane business is an important strategic step for Innovia. Futamura is an excellent long-term owner for Cellophane, with its core business focussed on cellulose and plastic films.
‘In line with our strategy, we will continue to focus on building our polymer films and banknote business where we see significant growth potential.
‘In particular, the benefits of our polymer technology for banknotes have proven to reduce counterfeiting levels significantly and to reduce substantially the lifetime costs to central banks, which we expect will continue to drive long-term demand for polymer banknotes across the globe.’
This article comes from Food Contact World, which provides exclusive news and analysis on developments in digital print trends, markets, and technologies.