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.
Other News
- Vietnam starts construction of US$432 million expressway to China
- KOICA launches new training program for Vietnamese journalists
- UK-funded CFA to support nine low-carbon projects in Vietnam
- Hanoi’s latest proposal on Ring road No.4 project to save US$380 million
- Construction of $120-million compostable resin factory kicks off in Hai Phong
- Construction of Long Thanh International Airport must be accelerated: Prime Minister
- Samsung urged to speed up construction on R&D center
- Hanoi to invest in construction of Phu Dong Port
- Hanoi to complete construction of inland container depots soon
- US firms keen on investment in Vietnam
Trending
-
Vietnam’s future path hinges on ASEAN robust development: Party Chief
-
Vietnam news in brief - November 24
-
Are Vietnamese people living healthier lives?
-
Finding ways to unlock Hanoi's suburban tourism potential
-
Hang Ma Street gears up for festive season
-
A Hanoi artisan turns straw into appealing tourism product
-
“Look! It’s Amadeus Vu Tan Dan” workshop - an artistic journey for kids
-
Vietnam news in brief - November 15
-
Experiencing ingenious spaces at the Hanoi Creative Design Festival 2024