Shanghai and Hong Kong, September 22, 2010 – Welkin today announced a growth equity investment in Precise Packing, the leading domestic supplier of carton-based aseptic filling systems for liquid foods in China, to support the further expansion of its product capacity and the development of an aseptic packaging materials business. Since Welkin’s investment, Precise Packing has completed the construction of a brand new manufacturing facility in Suzhou and began supplying Precise-made packaging materials to customers of its proprietary, industry-leading aseptic filling systems.
To comment on the investment, Weidong Jiang, the Founder, Chairman and CEO of Precise Packing, said: “Precise Packing is the first and only company in China to successfully develop and commercialize carton-based aseptic filling systems with fully homegrown, proprietary designs. Our products fulfill a deeply underserved demand for domestic alternatives to TetraPak, which has long dominated China’s liquid food aseptic packaging market. We mainly target smaller-sized beverage companies as customers and partner with them to support their growth, while growing our customer base to include larger beverage companies. Our strong and loyal customer base is the best reflection of the reliability of our products. To continue our rapid growth, we plan to also offer packaging materials that can be seamlessly used in combination with our aseptic filling systems.”
Johnny S. Kong, the Chairman and CEO of Welkin, said: “Precise Packing is a prime example of Chinese companies with homegrown technologies that are increasingly able to erode the competitiveness of foreign players in China and abroad. The company’s experienced management teams have developed an extensive customer base and local relationship network. In addition to their competitive cost base, Precise Packing has clear and sustainable advantages that enable them to rapidly capture growing market share.”
“The market for aseptic processing and packaging is an enormous opportunity. While China is already the largest consumer of aseptic cartons in the world, per capita penetration remains low. Industry conditions are also ripe for a new entrant to challenge the current market structure, with beverage companies driving demand for alternative solutions that are more competitive. Similar conditions exist in markets such as Southeast Asia and the Middle East,” added Alvin Zhang, a Managing Director of Welkin.
About Welkin
Welkin is a China-focused mid-market growth equity investment firm with a distinguished family heritage and strong entrepreneurial roots. Founded in 2009, Welkin invests in niche-leading, growth stage companies in China on behalf of global institutional investors and the firm’s employees. Welkin deploys its local resources, industry knowledge, and operating expertise, to drive impactful value creation and help companies achieve their full growth potential. For more information, please visit www.welkincapital.com.
About Shanghai Precise Packing Co. Ltd.
Precise Packing, founded in 2007 by Chairman and CEO Weidong Jiang, is the leading domestic supplier of carton-based aseptic filling systems in China, with manufacturing facilities in Shanghai, Jiangsu and Inner Mongolia. The company also supplies a wide range of systems and turnkey solutions for beverage processing. For additional information, please visit Precise Packing’s website at www.cn-pls.com.
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