TWO of the region's manufacturers have joined up with companies operating in the plastic packaging sector to create a £1.6bn-turnover business.

Britton Group, which has a base in Hartlepool, and Paragon Print & Packaging, which has an operation in Cramlington, Northumberland are to be joined with Exopack, Kobusch and PACCOR, which are based in North America and Europe, and operate as one global business.

The move will create the world's sixth-largest global plastics packaging company. The firms will retain their individual brand names.

Paragon makes packaging for the retail food industry and was acquired by current owner Sun European Partners in January from LDC and Equistone Partners Europe in a deal that reportedly valued the company at £150m.

Britton Group is headquartered in the North West and makes flexible plastic packaging across ten manufacturing sites with 1,800 staff.

It supplies to market sectors such as beverages, confectionary, petfood, construction and mailing.

They will operate under the banner of 'Exopack Holdings Sarl' as a Luxembourg company and the combined business will have 63 plants, 8,650 workers and revenues of more than £1.6bn.

Sun Capital's chief executive Marc Leder said: "This combination represents a natural next step in a process that began eight years ago to create a global packaging company with a solid foundation for future growth.

"Building on past collaborations between the companies, the combination will immediately achieve synergies and allow the combined company to more effectively pursue global business."