(Yicai Global) Jan. 3 -- Amcor, an Australian packaging company that counts Coca-Cola, JD.Com, and Amazon as its clients, will build its China headquarters in Shanghai to increase its chances of success in the tough market with many competitors.

Amcor has penned an agreement with Shanghai about its new China HQ that will focus on allocating resources, managing operations, and procurement, Shanghai Observer reported.

Amcor was planning to set up shop in Shanghai already two years ago, said She Xin, president of the firm's China business. China's consumer goods production and sales make up over one-quarter of the global total whereas Amcor's China business accounts for only 6 percent of its total tally so boosting local presence is necessary, Xin added.

"Amcor hopes to take Shanghai as a starting point to drive the packaging industry toward environmental protection, energy conservation, and digitalization," said She. But the company will face a fragmented market, with at least 10,000 rivals, he added.

Melbourne-headquartered Amcor has more than 10 production bases across China with 4,000 employees.

Editor: Emmi Laine