The group, whose wide range of products includes styrenic block copolymers used within flexible and barrier food packaging, will use the centre to improve its logistics and product availability within the region.

The construction signifies the increasing importance to the food industry of moving into merging markets to meet regional challenges directly.

According to consultancy group IPC, by 2010, the Asia Pacific region could lead flexible packaging consumption with a total market value of €43bn.

The Chinese flexibles market alone is expected to grow at a year on year rate of 15 per cent.

Kraton hopes its latest investments will put the company in a strong position to meet the demands of its customers in the country as well as the wider region.

With the distribution centre now in place, Kraton said it also hoped to open an accompanying technical centre at the site in Shanghai later this year.

The centre which it expects will become operational by April, will allow the group to perform product testing, as well as granting it further applications for packaging.

Michael Evans, vice-president of Kraton's Asia pacific operations said the move continued the company's strategy of driving advances in its operations.

"Kraton has built a strong presence in the region over the past several years and is taking the necessary steps to be the innovation leader in the region," he said.

"We have placed key resources, enabling technology, and additional capital in the region and will continue to commit necessary resources to grow our position."