Elanders has signed a contract to transfer its Beijing, China operations in print & packaging solutions to German packaging firm Edelmann.
Elanders has also initiated a partnership with the Edelmann Group, which has operations in China, India, Germany and the US.
The unit, which employs about 170 people, has annual net sales of about SEK80m ($8.9m).
The transaction is anticipated to be completed during the fourth quarter 2018. Elanders expects the deal to have a positive effect on cash flow of about SEK20m ($2.2m) and a minor negative effect on the operating result.
The partnership intends to create a common platform in order to offer global solutions in supply chain management that include from packaging, kitting, fulfillment and warehousing to global deliveries.
Elanders, which has been established on the Chinese market since 2005, currently employs over 900 people in ten different units that are situated in several parts of China.
The Edelmann Group provides packaging solutions for the health care, beauty care and consumer brand sectors. It has operations in nine countries with about 3,000 employees.
Elanders offers cost-efficient solutions that meet customers’ requirements for printed material both locally and globally.
The company developed advanced, user friendly and Internet-based order platforms that streamline the process of order to delivery and allow customized just-in-time or sequenced deliveries.
Elanders claims to offer are a perfect fit across all industries from small to large companies. The company offers high end rigid board boxes for luxury packaging requirements and cost effective CPG needs for direct to retail distribution.
Earlier this year, Elanders had expanded its offer and made investments in the supply chain business. The move resulted in further consequences for the Swedish print operations.
The company said agreed to transfer part of the operations in Mölnlycke to Borås where they will be transformed from traditional offset printing to become part of a modern logistics hub.
Elanders said in the new site, it will be able to handle complex flows from production, configuration, warehousing and distribution to adding value to customers’ products.