THAILAND – SCG Packaging (SCGP), a leading producer of packaging paper and corrugated containers, has announced the completion of a 90% stake acquisition in VEM Thailand (VEM-TH).
The deal was executed through SCGP’s wholly-owned subsidiary, SCGP Solutions (Singapore), and the investment was capped at Bt146.2 million (US$4m).
This strategic acquisition aligns with SCGP’s aim to enhance its healthcare packaging and supplies business.
VEM-TH, based in Rayong, Thailand, specializes in manufacturing high-performance polymer injection molding parts. It serves sectors including medical, electrical, and more in domestic markets as well as the US and China.
The merger grants SCGP access to VEM-TH’s quality management system for medical devices (ISO 13485) and certified class 8 and class 7 cleanrooms, ensuring precision in every production stage, including customized mold development.
SCGP is committed to sustainable growth and innovation, offering products ranging from fiber packaging to healthcare packaging and supplies.
The VEM-TH acquisition represents just 0.06% of SCGP’s total assets as of 31 March 2024 and 0.66% when combined with acquisitions from the previous six months. SCGP will integrate VEM-TH’s financial results into its reports starting in July 2024.
In a related move, SCGP announced last December the acquisition of a 70% stake in offset folding carton producer Starprint Vietnam (SPV) for VND676.08 billion (US$27.73m) through SCGP Solutions (Singapore).
Post-acquisition, SCGP will hold a 70% stake in SPV, Thailand-based Starflex Public Company will hold 25%, and the previous SPV shareholder will retain 5%, marking a significant investment in our expansion strategy.
SPV, an offset folding carton packaging manufacturer with two production facilities in Dong Nai, Vietnam, has a combined annual capacity of 16,500 tons of offset printing and eight million units of rigid boxes.
SPV’s customer network includes domestic and global companies, mainly in the fast-moving consumer goods sector.
This acquisition will bolster SCGP’s existing packaging solutions, enabling the company to serve its growing customer base, particularly in the ASEAN region.
It will also expand SCGP’s footprint in Vietnam’s high growth offset folding carton packaging market.
SCGP CEO Wichan Jitpukdee stated, “SPV will be SCGP’s first high-quality rigid boxes facility in ASEAN and our first offset folding carton production base in Vietnam.
“Adding offset and rigid boxes to SCGP’s portfolio will significantly enhance our ability to provide integrated packaging solutions, meeting the rising demand for packaging that enhances customers’ brand visibility in Vietnam and ASEAN. This will also drive synergy among our regional operations.”
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