Rengo Group targets expansion in Indonesia through 60% stake acquisition

INDONESIA – Tokyo-based Rengo Co Ltd announced expansion in its Southeast Asian operations with a share purchase agreement for 60% of PT Prokemas Adhikari Kreasi, known as Mypak, an established corrugated packaging producer in Indonesia. 

The deal, handled via Rengo’s Thai joint venture Thai Containers Group Co Ltd through TCG Solutions Pte Ltd, aims for completion by the end of 2025.

Mypak operates a single factory in Bekasi Regency, on Java Island’s western edge, specializing in corrugated solutions for diverse industries. 

This acquisition will integrate Mypak into Rengo’s growing network, bringing the total to 12 corrugated facilities across Indonesia. 

Currently, Rengo manages four plants through its partnership with PT Surya Rengo Containers and PT Indofood CBP Sukses Makmur Tbk, a prominent food conglomerate, alongside seven others under TCG.

The move comes amid rising demand for efficient packaging in the region, driven by e-commerce growth and food sector needs. 

Corrugated materials, often made from recycled fibers, play a key role in reducing waste, aligning with broader efforts to cut plastic use in supply chains.

In a statement, Rengo highlighted Southeast Asia’s role in its global strategy. 

The company indicated that Indonesia’s market offers strong potential for operational growth, with plans to invest in capacity upgrades post-acquisition. 

“We see this as a way to meet customer demands more effectively while expanding our local footprint,” said a Rengo spokesperson.

Rengo’s entry could accelerate these changes. Mypak’s facility already uses energy-efficient machinery, processing up to 100,000 square meters of board monthly. 

Integration might introduce advanced recycling protocols from Rengo’s Japanese operations, where waste recovery rates exceed 95%. 

Hiroyuki Yoshie, Rengo’s president, commented briefly on the deal during a virtual industry forum last week. 

“Our focus remains on delivering reliable, eco-conscious packaging to Southeast Asian partners,” he stated, emphasizing supply chain reliability over rapid scaling.

The agreement values the stake at approximately US$15 million, based on preliminary filings, though final terms depend on regulatory approvals from Indonesian authorities. 

Rengo expects the transaction to contribute to earnings starting in fiscal 2026, with initial synergies from shared procurement.

Mypak employs around 200 staff, and Rengo plans to retain all positions while adding training programs on sustainable production techniques. T

his approach mirrors a recent Thai Containers initiative that upskilled 150 workers in recycled fiber handling.

As Indonesia’s packaging sector grows at 7% annually, projected to reach $2.5 billion by 2027, Rengo’s investment signals confidence in long-term viability. 

The company operates 200 global sites, producing over 10 million tons of paper annually, much of it for corrugated applications.

For Mypak, the partnership opens access to Rengo’s R&D resources, including bio-based coatings that extend product shelf life without added plastics. 

Early tests in similar acquisitions showed a 10% drop in material costs through optimized designs.

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