Australian packaging company Colorpak is moving forward with a strategy of purchasing the folding carton making trades, also comprising of a plant in Auckland, which is in the possession of Carter Holt Harvey following the checking of the books.

Carter Holt Harvey is in the possession of Graeme Hart's Rank Group and the New Zealand billionaire has been concentrating upon setting up a world beverage packaging business from the Carter Holt business he got hold of from International Paper.

According to what Colorpak told today, it had finished due diligence and signed the required deals with Carter Holt Harvey for purchasing its folding carton businesses situated at Reservoir and Mount Waverley in Victoria, Villawood in New South Wales and in Auckland at a price of $A5 million ($NZ6.6 million).

The acquisition, which had been initially signalled in October, provides Colorpak with an entry into the New Zealand market through the production work in Auckland.

The company had earlier told that the businesses being acquired will be giving employment to 658 persons.

Colorpak has agreed to deals with entities within the Rank Group for supplying folding carton board and corrugated shippers in Australia as well as New Zealand.