SCG acquires major stake in Visy Packaging with eye to recyclability
SCG has acquired 80 per cent shares in Visy Packaging (Thailand) Ltd, in a transaction valued at approximately Bt4.34 billion.
Visy Packaging (Thailand) Ltd is Asia’s leading producer in food and processed fruit packaging from innovative materials and using advanced production technologies. Unique features of its products include high heat resistance, extended shelf life and recyclability that meet the needs of leading brands worldwide.
Roongrote Rangsiyopash, SCG's president and chief executive officer, said that amid the challenges of fluctuating raw materials and energy costs and higher competition in the packaging business market, SCG is still able to capture opportunities in the growing packaging industry that continues to thrive in both Asean and other parts of the world.
SCG remains committed to its goal of building a long-term sustainable growth, said the president.
“Recently our packaging business completed an 80 per cent share acquisition in Visy Packaging (Thailand) Ltd from Visy Singapore Investments Pte Ltd, the current shareholder and a holding company within the Visy Group.
This transaction is valued at approximately Bt4.341 billion and will be processed via SCGP Rigid Plastics Co Ltd, a 100-per-cent owned subsidiary of the packaging business.
Visy Packaging (Thailand) Ltd is an advanced thermoformed food packaging producer from innovative materials. Its high quality cups, trays and jars carry unique features, such as high heat resistance, which also helps prolong product shelf life, as well as being light weight and recyclable.
It is also viewed as a safe option to substitute for conventional metal containers. These products are well accepted by global brands who seek high quality food packaging in a growing market such as Asean, which is the world’s hub for food and fruit production, he said.
“The acquisition of major shares in Visy Packaging (Thailand) Ltd will strengthen the packaging business of SCG, both in terms of revenue growth and competitiveness. It also reaffirms our positions as a global brand partner for sustainable packaging solutions,” Roongrote added.
As of June 30, 2019, Visy Packaging (Thailand) Limited had recorded revenue from sales of Bt1.77 billion, with a total of 100 employees and total assets of approximately Bt2.01 billion.
