Packaging company VPK Group has acquired a share in UK-based corrugated sheets supplier CorrBoard.
The company acquired 50% of the supplier by purchasing the stake of former shareholder Garthwest, and also through new shares subscription.
It has become major shareholder of the CorrBoard consortium formed by VPK Group, Dairi-Pak, Fencor Packaging Group, GWP Group, McLaren Packaging and Swanline Print.
The group specialises in manufacturing recycled paper and paper-based packaging for various markets including food and beverages, e-commerce, tubes and cores.
VPK Group CEO Pierre Macharis said: “CorrBoard’s modern factory is impressive and with this new investment, strong management, know-how and skills, CorrBoard will continue to operate as an independent unit with a dedicated strategy.
“This will help deliver high service levels and a competitive product offering to the market. VPK has a long history of successful joint ventures across Europe and views CorrBoard as a great way of continuing that in the UK sheet board market.”
Additionally, one of CorrBoard’s founding partners McLaren Packaging has subscribed for new shares.
The new investment is expected to bring financial security to the company.
Following these investments, CorrBoard will be installing a new £1.5m automated palletisation system at its 320,000ft2 North Lincolnshire and also upgrade its IT control system.
McLaren Packaging managing director Donald McLaren said: “CorrBoard’s operational success will be further enhanced with VPK’s increased involvement. By working closely with VPK, CorrBoard’s UK partners are excited about the bold plans for the future.”