Saturday, November 28, 2020

SCG Packaging projects Bt100bn revenue boost next year

Oct 29. 2020
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By The Nation

SCG Packaging (SCGP) forecasts its revenue next year will rise by over Bt100 billion thanks to its second polymer factory in Vietnam and acquisition of three paper and polymer packaging businesses.

SCGP chief executive officer Wichan Jitpukdee said the Vietnam plant should be completed by the end of this year and would help boost production.

He also expects to see revenue realised by the end of 2020 from the acquisition of Bien Hoa Packaging Joint Stock Company (SOVI).

"With demand for paper and polymer packaging expected to increase despite the Covid-19 outbreak, we have a plan to expand the business, especially in Asean countries," he said, adding that the acquisition of three paper and polymer packaging businesses is currently being negotiated, with one of the deals set to be finalised by year-end.

He said paper-packaging factories in Vietnam, Indonesia and the Philippines worth Bt7.7 billion are under construction and on schedule for completion in 2021.

"These factories will help boost production by 620,000 tonnes per year and generate revenue of Bt9 billion per year, so the company's revenue from overseas will increase sharply," he said. Currently, the company’s overseas business accounts for 52 per cent of total revenue, he added.

This was an opportunity for investors to buy SCGP shares at a price lower than the initial public offering (IPO) price, he said.

"We expect our shares to be attractive to foreign investors after the company is listed on the MSCI on November 10," he said, adding that SCGP is already listed on the SET50 Index.

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