Sweden-based ÅR Packaging and Italy-based SADA Packaging have entered into a manufacturing, sales and marketing partnership.

An agreement to this effect was signed between both companies.

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Under the partnership, ÅR Packaging will expand the availability of packages that are made out of cardboard or other materials in combination with cardboard in Italy, which is SADA Packaging’s key market.

SADA Packaging CEO Antonio Sada said: "This agreement drives our company to an international dimension."

"This agreement drives our company to an international dimension."

Formed in 2011 after a merger between one of Europe’s leading carton board packaging groups A&R Carton and flexible packaging manufacturer Flextrus, ÅR Packaging currently employs around 1,600 employees in 14 factories in seven countries.

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Headquartered in Lund, Sweden, the company has an annual turnover of approximately €400m. It is owned by Finnish private investment company Ahlström Capital and Accent Equity, which is a group of private equity funds focusing on investments in mid-market buyout transactions in the Nordic region.

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AR Packaging Group president and CEO Harald Schulz said: "We are pleased with this agreement and look forward to a successful collaboration with SADA Packaging in the near future.

"Since our main markets are in north-western and eastern Europe whereas SADA Packaging’s main market is in Italy, this agreement will increase our European footprint and will let us grow further as a global company in the field of converting packages."