Japanese to penetrate US packaging machinery sector

Japanese packaging machinery firm Shibuya Kogyo is close to finalising its acquisition of Hoppmann, a move that will expand the firm’s presence within the lucrative US market. A letter of intent has been signed for Shibuya to acquire 100 per cent of Hoppmann’s US shares with the purchase to close this July.

Japanese packaging machinery firm Shibuya Kogyo is close to finalising its acquisition of Hoppmann, a move that will expand the firm’s presence within the lucrative US market. A letter of intent has been signed for Shibuya to acquire 100 per cent of Hoppmann’s US shares with the purchase to close this July. The acquisition comes just as world demand for packaging machinery is projected to rise over 4 per cent a year through 2008 to over $31 billion. Market research firm Freedonia says that improving economic fundamentals - especially income levels - will bolster most packaging machinery consuming sectors. As a result, manufacturing output is set to increase, creating opportunities for packaging machinery suppliers, according to the report. It is this growth that Shibuya is keen on exploiting. The publicly-listed company, which recorded sales last year of $500 million, manufactures filling systems, bottle unscramblers, washers, cappers, labellers, casers and packers, conveyors and palletising equipment. Hoppmann on the other hand is a privately held company, which reported sales of $15 million. The firm specialises in manufacturing assembly systems, labelling machinery, and is the industry leader in high speed, centrifugal feeders/unscramblers.