Rengo Co., Ltd. has acquired a 20% stake in Sun Tox Co., Ltd. by subscribing for an allocation of new shares to a third party by Sun Tox, as the company said in the press release received by Lesprom Network.
Sun Tox is a plastic film manufacturer under the Tokuyama Corporation (group of companies and has been a long-time major film supplier of the Rengo Group.
Through this equity participation, Rengo aims to support the enhancement and development of Sun Tox’s plastic film business as a group. Specifically, through improving Sun Tox’s distribution network, Rengo Group will shorten the lead time for procuring raw materials used in flexible packaging, allowing flexible packaging products to be supplied to clients in a shorter time and more stably.
In addition, from a business continuity point of view, enhancing the framework for a stable procurement of raw materials will also contribute to improving customer satisfaction.
Rengo Co., Ltd., together with its subsidiaries, manufactures and sells paperboard and packaging-related products in Japan and internationally.