The Italian papermaker has just announced that it has signed an agreement to acquire a majority stake in BoingTech (specialized in the manufacture of radio-frequency labels), a subsidiary of Shanghai Inlay Link Inc. The aim of this operation is to strengthen the company’s position in Asia in the market for labels and specialty papers for the luxury goods sector.
To meet the traceability challenges facing brands, Fedrigoni has decided to rely on RFID (radio-frequency identification) labels. Sensitive product data is contained in a microchip inside the label, and can only be read by a dedicated reader.
“The world of RFID is evolving rapidly and becoming increasingly strategic for our Group. This agreement materializes our ambition to increase our market share in the RFID label manufacturing segment, and multiplies the opportunities for partnerships with our customers (converters, printers or systems integrators) and responses to their needs,” said Marco Nespolo, CEO of the Fedrigoni Group. “This acquisition is also consistent with our expansion strategy in Asia, where we already have several production plants and an extensive distribution network.”
For the time being, Shanghai Inlay Link will retain a significant stake in the company to ensure a smooth transition and business continuity.
The agreement allows Fedrigoni to purchase the remaining BoingTech shares at a later date.
