Australia-headquartered global packaging manufacturer Amcor is acquiring Chinese firm Jiangsu Shenda Group’s flexible packaging business for RMB350 million. The company says it expects that the returns, measured as EBIT to funds employed, will reach more than 20% by calendar year 2016 through cost synergies and continued strong growth in the Chinese market.

The acquired business has sales of approximately RMB440 million and two plants in the Jiangsu province in Eastern China. Two thirds of its sales are to the pharmaceutical, snacks and culinary end markets. The firm says that following the acquisition, it will be the market leader in Eastern China with a strong position in both film manufacturing and conversion.