SCG announces acquisitions in Norway, Indonesia
Siam Cement Group (SCG) has announced its acquisitions of a stake in Norner Holding, a Norwegian chemical-research company specialising in polymers, and in Indoris Printingdo, a packaging manufacturer in Indonesia.
SCG Chemicals Company, a wholly owned subsidiary of SCG, has purchased an initial 51-per-cent stake in Norner, with the remaining 49 per cent to be acquired by next September, SCG president and chief executive officer Kan Trakulhoon told the Stock Exchange of Thailand yesterday.
The entire 100-per-cent stake is valued at about Bt340 million, including about Bt40 million of debt. Norner Group has facilities in Stathelle, Norway. Its consultancy services range from polymerisation to various plastics applications, including oil and gas pipes and packaging. Equipped with its own comprehensive scientific lab, researchers and technicians, Norner Group claims to be one of a leading global centre for plastics research and development.
Meanwhile Thai Containers Group (TCG), a 70:30 joint venture between SCG Paper and Japan’s Rengo Co, has acquired a 90-per-cent stake in Indoris Printingdo. This transaction has an enterprise value of Bt290 million and includes debt of Bt60 million.
Indoris is a manufacturer of packaging products mainly for its Indonesian-based multinational customers. With a combined capacity of 8,000 tonnes per year, production is primarily high-value-added (HVA) products such as cartons. Its facilities are in Tangerang, about 40 kilometres west of Jakarta, and registered sales amounted to Bt153 million last year.
These investments reflect the determination of SCG to continue to develop HVA products, which will allow enhanced competitiveness and sustainability.
The Indoris acquisition is in line with the group’s strategic entry to the Indonesian packaging market, following the September 2013 acquisition of Primacorr Mandiri.
