Thai group purchases 70% stake in Vietnamese plastics manufacturer
SCGP joins hands with partners to expand packaging businesses to cope with growing demands in Vietnam.
SCG Packaging (SCGP), a Thai group, announced to acquire 70% stake in Duy Tan Plastics Manufacturing Corporation (Duy Tan), a producer of rigid plastic packaging in Vietnam, as part of its plan to invest more US$334 million in the country.
|A signing ceremony between SCGP and Duy Tan to acquire 70% stake in Vietnamese packaging company on February 9. Photo: SCGP|
It is expected that SCGP’s acquisition will be completed in the first half of 2021. Duy Tan manufactures household plastic containers with a capacity of 116,000 tons per year.
The company’s increased investment in Vietnam is in line with its strategic plan, which foresees an increase in the diversity of products, including plastic and paper packaging, as well as the development of domestic design teams, according to Wichan Jitpukdee, CEO of SCGP.
“We are prepared to work with all partners to share experience and knowledge in the development of integrated packaging solutions and support the growing demand for diverse types of packaging among customers in ASEAN,” Jitpukdee added.
During the past decade, the Thai company has continuously increased investment in Vietnam, which has yielded a revenue growth of more than 10% annually.
All three projects of the company in Vietnam including Vina Kraft Paper Co., Ltd. in the southern province of Binh Duong, the packaging producer Tin Thanh Packing JSC and Bien Hoa Packaging JSC are expected to contribute to its increased sales of about 8.5 billion baht (US$283.1 million) per year.
The Thai company is also looking into expanding its paper production capacity in the north of Vietnam. “This is to satisfy domestic demands and expansion of export markets, which will be a boon to Vietnam’s economic growth as well,” Jitpukdee said.
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