The Era of 2.0 of Strategic Cooperation between O.R.G. and CPMC Holdings Limited


On March 7th, O.R.G. Packaging Limited by Share Ltd signed a strategic cooperation agreement with CPMC Holdings Limited of COFCO and the two parties will cooperate deeply in many fields and advance the relationship between the two parties to the new stage.


According to the cooperation agreement, the two parties will further explore the multi dimension cooperation on technology, marketing, capacity layout and supply chain on the basis of capital cooperation. Dong Gao, the secretary of board in O.R.G., said, “O.R.G. will further exchange and cooperation with CPMC Holdings Limited from the earlier share cooperation to the industrial synergy.”


In addition, the two sides will also organize the research and development team and achieve the goal of technical advantages in the field of packaging, fully allocate respective research and development resources and co-ordinate the R & D resources. Second, we will choose each other in the same business conditions to carry out business cooperation, such as packaging design, packaging production, iron printing, filling and brand planning and marketing. Third, we will optimize business and regional structure, avoid duplication of investment and reduce the degree of competition in the same industry under the existing market conditions. Fourth, we will make use of the resources and advantages of our respective overseas markets to jointly exploit overseas markets and cultivate overseas operations and production bases. Fifth, the two sides will appoint personnel to set up strategic cooperation committee so as to establish a long-term communication mechanism and organize, implement and supervise the strategic cooperation between the two sides.


Last November 8th, O.R.G. and COFCO (Hongkong) Co., Ltd. signed a stock agreement of purchase and sale. Origin was allowed to be the second largest stockholder of CPMC Holdings Limited by accepting its shared issued of 27%. O.R.G. has claimed that it is the way to integrate metal packaging enterprises, and is an important measure to promote the integration strategy of large packaging. As the shareholder of CPMC Holdings Limited, it will solve the current problem that O.R.G. largely relies on the single customer Red Bull, enrich and optimize the product structure and customer structure and improve the ability to resist risk. At the same time, the two sides will make use of complementary advantages to serve customers with different needs through differentiated positioning and product solutions so as to derive more business opportunities.


Besides, with the establishment of mixed reform strategy of central enterprise from the Centre Authorities, the central enterprises in the mixed reform does not take too much substantive action, especially involving the transfer of state-owned shares to the private capital, the attitude of the central enterprises is more cautious. The introduction of CPMC Holdings Limited in O.R.G. is benchmark significance in the mixed reform of COFCO.  Industry insiders believe that O.R.G. becomes the shareholder of CPMC Holdings Limited, which is likely to be learned by more central enterprises and state-owned enterprises, and its mixed reform will appear in the process of the mixed reform of several central enterprises and state-owned enterprises.


O.R.G. Packaging Limited by Share Ltd is the leading enterprise in the domestic packaging industry. It covers three pieces of beverage cans, two pieces of beverage cans, food cans and beer cans. In recent years, based on the way of service intelligent manufacturing promote the business model innovation, Origin has built up the large packaging platform integrated service provider, which can provide packaging design, packaging manufacturing, filling, brand design, marketing other comprehensive services for customers other comprehensive services. And the main customers are Red Bull, Jia Duo Bao, Tsingtao Brewery, Yanjing Beer, China Resource Breweries, Budweiser, Yili, Synutra, Flying Crane Milk, Want Want, Daliyuan, Wahaha, Yinlu Food Company and so on


CPMC Holdings Limited. is the leading enterprise in the field of comprehensive consumer goods and metal packaging. It covers three major categories, including Ma Kou iron cans, aluminum cans and plastic packaging. The downstream market covers many industries, such as food, beverage, beer, chemicals for daily use and chemical industry, and is in the leading position in many subdivided markets. And its main customers include Jia Duo Bao, Coke, Pepsi-Cola, China Resource Breweries, Tsingtao Brewery, Lulu, Dali Group, Procter & Gamble, Unilever and so on.