Czech Republic (From news reports) -- German paper and packaging company Palm Group has taken a 50% interest in Power Packaging, which is based in the Czech Republic.

According to Palm, the move is intended to broaden its packaging division's capabilities in tailored corrugated solutions, particularly in product areas that require significant manual input.

The collaboration is designed to bring together Power Packaging's know-how with Palm's sales channels and production network in packaging.

Power Packaging managing director Ralph Wakolbinger stated: "By partnering with Palm, we have gained a strategically important partner who shares our goals and supports us in successfully developing major international projects, including those in the east. Through close collaboration, we create new synergies, strengthen our market position and set important impulses for sustainable growth."

Power Packaging operates a processing facility in Nýrsko, in the western Czech Republic, focused on complex corrugated cardboard packaging.

The company reports annual revenue of €4m ($4.63m).

Palm's entry as a shareholder is described as a way to keep Power Packaging under family ownership over the longer term, with both parties citing a shared "mindset and business principles".

Power Packaging is expected to continue operating under its current organisational set-up and retain its existing management team.

Palm CEO Marina Palm added: "Through this joint venture, we are strengthening our position in the European market for complex packaging solutions and will be able to offer our customers an even broader product range in future."

During 025, Palm Group has completed the acquisition of five European plants from International Paper.

The deal added facilities in France, Portugal and Spain to the group's operational network.

The divestiture by International Paper forms part of the regulatory commitments required by the European Commission following International Paper's acquisition of DS Smith.