SCGP bolsters recycling portfolio with acquisition of Peute for US$78.4M
THAILAND – Thailand-based packaging provider SCG Packaging has acquired Peute Recycling, a Dutch company that recycles and trades packaging material, for around THB2.87bn ($78.4 million).
The acquisition is through SCGP Solutions (Singapore) Pte. Ltd., which is a wholly owned subsidiary of SCGP. Peute’s financial performance will be consolidated from July 2022 onward.
According to SCGP, this transaction will enable the company to expand into the rapidly growing international packaging material recycling business.
In addition, it forms an important pillar for SCGP’s long-term strategic direction to strengthen all levels of packaging business from raw material sources, upstream and downstream production through to the integrated packaging solutions.
With a global surge of sustainability awareness, the demand for recycled content has been expanding significantly and continuously, notes SCGP.
The prominent packaging materials recycling and sourcing capabilities from this transaction would allow SCGP to fulfill the emerging demand for recycled materials which are driven by changes in customers and consumers’ behavior.
The ability to directly access the sources of recovered paper would also provide SCGP an opportunity to enhance the efficiency of recycling operations in ASEAN with good practices of the advanced waste management model in Europe from the established player in its fields.
Peute is the largest independent packaging materials recycling and trading company of paper and plastic in the Netherlands with a strong relationship with customers for over 60 years.
With solid operation and the ability to continue business growth amid economic challenges in Europe, the company recorded a revenue of US$255.18 million (approx. 9,160 million Baht) in 2021 with a profit of US$3.28 million (approx. 120 million Baht) and assets of US$53.29 million (approx. 1,930 million Baht) at the end of last year.
The company currently poses the ability to competitively source 1.0 million tons per year of recovered paper (RCP) and 0.1 million tons per year of recovered plastics at their facility in Dordrecht with an ongoing project to relocate the facility to Alblasserdam, nearby Rotterdam port, to double the sourcing capacity and improve cost management efficiency.
The investment is aligned with the growing global awareness of sustainability, which leads to a significant increase in the usage of recycled materials.
SCGP is committed to fulfilling and facilitating the increasing preference for sustainable packaging through products ranging from fiber packaging, performance & polymer packaging, and other outstanding solutions.
Currently, the Company operates 56 manufacturing facilities in Thailand, Vietnam, Indonesia, the Philippines, Malaysia, the UK, and Spain.
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