DIC buys NZ-based Pacific Inks

DIC has bolstered its presence in the water-based flexo ink market with its takeover of all Pacific Inks businesses. The buyout of the New Zealand-owned company is further industry consolidation in the strategic ink manufacturing sector.

DIC claims that its reinforced product line-up and broad commercial product line will enable it to respond more effectively to the expanding demand for packaging inks. Since the deal was struck early December, DIC forecasts this acquisition will add ¥2.5 billion (A$30.9m) to its annual net sales by fiscal 2015.

The highlight of the purchase is Pacific Inks’ proprietary Accubatch automatic ink dispensing and blending system. The technology has raised the profile of the 34-year-old independent ink manufacturer.

According to DIC, the stable demand for packaging inks in the developing countries reflects rising living standards, and popularity of packaging individual items. It expects the Asian Pacific region to grow by around 10% annually.

With a product line-up centred on packaging inks for corrugated board, Pacific Inks has plants and facilities all over the world, inclduing the UK, China and SE Asia as well as Auckland and Sydney. These will be rationalised by DIC to improve efficiency in production. At time of going to press, Ian Johns, managing director of DIC ANZ was unavailable to confirm whether or not there would be local plant closures or job losses.